More than five years ago, I wrote an article in which I boldly declared that “the Chinese are coming” for “a piece of our market.” Back then, it seemed almost far-fetched. So much so that several readers were accusing me of being either of these two: delusional or corrupt.

Well, the Chinese haven’t exactly taken over the Philippine car market, but established brands have been put on notice about China’s hostile presence in the automotive business. And we will continue to see new brands coming in as our much-hated Asian neighbor—politically speaking—is bent on ending Japan’s monopoly in our nation’s car sales.

When I wrote the above-mentioned piece, I solely focused on the effect that Chinese automakers would have on Filipino buyers. Alas, a short half decade has passed and the impact of Chinese cars is now greatly felt by the Japanese—globally, mind you.

So successful are BYD and its electrified vehicles, for instance, that the brand will surpass its 2024 worldwide sales target of four million units, and, in doing so, overtake both Honda and Ford in the world rankings.

This is no joke. The Japanese are now shaking in their boots (perhaps with the exception of Toyota, which remains in pole position). In fact, hogging the headlines in the car industry right now is news of Honda potentially merging with Nissan. That both these entities are the second- and the third-largest car companies in Japan, tells you how dire the situation is.

The problem is straightforward: Japan’s cars are seemingly outdated next to their Chinese rivals. Not to mention China-made vehicles are cheaper. So both Honda and Nissan need to cut costs while improving their technologies.

As early as March this year, the pair had announced their intent to cooperate with a view to make themselves more competitive against the Chinese. A sound goal considering that both of them had been losing ground in China and the United States—the two most important automotive markets in the world.

More recently, Nissan revealed that it was already in “emergency mode,” and that it was looking for a benefactor to help it survive the 12-month timetable it had been given by experts.

Foxconn of Taiwan, manufacturer of electronic gadgets, reportedly made its interest in Nissan known, only to be “rejected.”

So we have the “merger” talks between Honda and Nissan (and very possibly Mitsubishi). If there’s a savior to rescue Nissan, why not a Japanese one? Indeed, news of this development boosted Nissan’s shares by 24%, a much-needed stimulus for its almost-moribund state.

The latest story out of this collaboration is that Honda and Nissan could share “mutual production” of models. Something similar to what Toyota had with Subaru in creating the GR86.

If this became a reality, the merger would give birth to the third-biggest carmaker in the world, with a combined annual output of 7.4 million units.

Can prideless technology-sharing and aggressive cost-cutting save both Nissan and Honda? That is the hope. Although it must be stated that not all mergers have been successful (see Stellantis).

Were the Japanese sleeping on the Chinese? Funny how it’s the Japanese who now have to play catch-up with the Chinese. Did you see this coming this soon?