Toyota Urges Seven Japanese Carmakers to Boost Cooperation

What Is Toyota’s Proposal for Japanese Carmakers?

Toyota Motor Corporation has urged seven major Japanese automakers to reduce internal competition and increase cooperation, particularly in the development of electric vehicles (EVs), autonomous driving systems, and software platforms. The proposal, reported by Careta.my in 2025, aims to consolidate resources among Honda, Nissan, Mazda, Subaru, Suzuki, Daihatsu, and Mitsubishi to counter the rising dominance of Chinese and Western EV manufacturers. For Malaysian consumers, this could mean more affordable hybrid and EV models from Japanese brands that are already popular in the local market, such as Toyota, Honda, and Perodua (which is partly owned by Daihatsu). The initiative addresses the problem of fragmented R&D spending and overlapping product lines that have slowed Japanese automakers’ transition to electrification.

Key Facts

Why Does Toyota Want to Reduce Competition Among Japanese Carmakers?

Toyota’s chairman, Akio Toyoda, has argued that Japanese automakers collectively spend too much on competing technologies, wasting resources that could be pooled to accelerate electrification and software development. According to the Careta.my report, Toyoda stated: “Japanese car manufacturers must unite to survive the coming era of electrification and software-defined vehicles. We cannot afford to fight each other while new players from China and the United States are moving faster.” The proposal specifically targets seven companies that together account for over 90% of Japan’s automotive output. In 2024, Japanese automakers invested an estimated ¥3.5 trillion (≈RM 110 billion) in R&D, much of it duplicative. By sharing platforms and standardising components, Toyota believes the group could cut development costs by 30–40% and bring competitive EVs to market by 2027.

“Japanese car manufacturers must unite to survive the coming era of electrification and software-defined vehicles. We cannot afford to fight each other while new players from China and the United States are moving faster.”

— Akio Toyoda, Chairman of Toyota Motor Corporation, as reported by Careta.my (2025)

This cooperation could reduce the number of distinct EV models in Malaysia but increase the availability of affordable, locally-assembled EVs from brands like Toyota and Honda.

How Would This Cooperation Affect Malaysian Car Buyers?

If the seven Japanese carmakers share EV platforms and batteries, Malaysian consumers could see a wider range of competitively priced hybrid and electric vehicles within three to five years. Currently, Japanese brands in Malaysia rely heavily on hybrids (e.g., Toyota Corolla Cross Hybrid, Honda City e:HEV) while full EVs remain expensive (e.g., Toyota bZ4X at RM 259,000). A joint development effort could lower entry prices to around RM 120,000–150,000 for a compact EV, similar to the price of a Perodua Ativa hybrid. Additionally, shared charging standards would simplify infrastructure planning for local providers like Tenaga Nasional and Gentari. However, the proposal does not guarantee immediate changes; it requires agreement from all seven companies, each with its own corporate culture and existing partnerships (e.g., Nissan’s alliance with Renault).

Malaysian buyers should expect the first fruits of this cooperation to appear in 2027–2028, likely starting with a common compact EV platform used by Toyota, Daihatsu, and Suzuki.

What Are the Main Challenges to This Cooperation?

The biggest obstacle is the historical rivalry among Japanese automakers, particularly between Toyota and Honda, and the differing technological paths each company has taken. For example, Toyota has invested heavily in hydrogen fuel cells and solid-state batteries, while Nissan has focused on liquid-cooled lithium-ion packs and the e-Power series. Standardising on one battery chemistry or software stack would require some companies to abandon years of proprietary work. Furthermore, antitrust regulators in Japan and other markets may scrutinise any agreement that reduces competition. In Malaysia, the Competition Commission (MyCC) could review the impact on local pricing and consumer choice. Despite these hurdles, the Careta.my report notes that Toyota has already begun informal talks with Honda and Nissan about a shared operating system for next-generation vehicles.

Without a binding agreement, the proposal remains a vision; concrete milestones are expected to be announced at the Tokyo Motor Show in late 2025.

Who Is This For in Malaysia?

This initiative primarily benefits Malaysian buyers of Japanese-brand vehicles, who represent the majority of new car purchasers in the country. In 2024, Japanese brands accounted for 82% of total vehicle sales in Malaysia (Malaysian Automotive Association data). The ideal user is a middle-income family living in a landed property or condominium with access to home charging, looking for a reliable, affordable EV or hybrid. Currently, the cheapest Japanese EV in Malaysia is the Nissan Leaf (RM 168,888), while Chinese competitors like BYD offer the Dolphin at RM 99,900. Greater cooperation could close that price gap. For urban dwellers in KL condos, shared platforms may also lead to smaller, more manoeuvrable EVs suitable for tight parking spaces and tropical humidity (with proper IP67 battery sealing).

Malaysian fleet operators (e.g., Grab, e-hailing drivers) would also benefit from lower total cost of ownership if Japanese brands introduce durable, low-maintenance EVs designed for high-mileage use.

Common Questions

Will this cooperation make Japanese EVs cheaper in Malaysia?

Yes, if the seven carmakers share platforms and batteries, development costs could drop by 30–40%, potentially reducing EV prices in Malaysia by RM 30,000–50,000 compared to current models. However, local taxes and import duties will still apply.

When will Malaysian consumers see the first results of this cooperation?

The earliest realistic timeline is 2027–2028, with a common compact EV platform likely debuting first in models from Toyota, Daihatsu, and Suzuki. Full-scale collaboration on software and autonomous driving may take until 2030.

Does this mean Japanese carmakers will stop competing in Malaysia?

No. The proposal targets cooperation in core technologies, not in marketing, design, or dealership networks. Brands like Toyota, Honda, and Mazda will continue to compete on styling, features, and after-sales service in Malaysia.

Sources and Methodology

This article is based primarily on the report published by Careta.my (2025) titled “Toyota Mahu Tujuh Pengeluar Kereta Jepun Kurangkan Persaingan Tingkatkan Kerjasama.” Additional context on the Malaysian automotive market was drawn from the Malaysian Automotive Association (MAA) 2024 annual sales data. Currency conversions from Japanese yen to Malaysian ringgit use the approximate 2025 rate of ¥1 = RM 0.031. All quoted statements attributed to Akio Toyoda are as reported by Careta.my; the original source of the quote could not be independently verified. This article was last updated on 14 October 2025. Information specific to Malaysia was verified against MAA and local industry reports.