Automakers Confront Product, Supply and Market Pressures

Global automakers enter 2026 facing a mix of product gaps, supply risks and intensifying Chinese competition.

U.S. incentives for tiny Japanese kei cars have stirred debate, but industry observers in Japan say those micromodels face steep hurdles winning American buyers despite policy moves encouraging their import and manufacture.

Infiniti named Eric Ledieu Americas chief, a promotion dealers praised for his captive‑finance experience as the brand readies the QX65 and seeks to rebuild a thin U.S. lineup amid declining sales.

Toyota chairman Koji Sato outlined seven near‑term challenges for Japan’s carmakers — from securing rare‑earth supplies and reforming vehicle tax systems to boosting international competitiveness — while Toyota and Nissan lean on locally engineered EVs to sustain China volumes as Honda struggles there.

Renault’s Shanghai tech center promises aggressive “China‑speed” development, targeting roughly 16 months to produce two Twingo E‑Tech derivatives, illustrating how rapid regional engineering cycles are reshaping product timelines.

Nissan reported roughly 926,000 U.S. deliveries in 2025, largely flat as tariffs and product missteps weighed on results. Meanwhile BYD and other Chinese EV makers push deeper into overseas markets, prompting legacy brands to accelerate portfolio and supply‑chain responses.