Suzuki Motor overtook Nissan as Japan’s third-largest automaker in 2025, marking the first time in over a decade that Suzuki outsold its longtime rival.

The company reported a 1.4 percent rise in global sales, reaching approximately 3.3 million vehicles, reflecting steady demand for compact cars and affordable models worldwide.

Nissan’s total sales fell 4.4 percent to 3.2 million units, affected by supply chain disruptions, semiconductor shortages, and declining demand for some traditional sedan models globally.

Both companies continued to trail Toyota, which reported record sales of 10.5 million vehicles, including Toyota- and Lexus-branded models, maintaining its dominance in the global automotive market.

Honda, meanwhile, saw sales decline by 7.5 percent to 3.5 million vehicles, reflecting weaker demand in key markets, production challenges, and the gradual transition to electric vehicles.

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Analysts said Suzuki’s growth benefited from strong performance in emerging markets such as India, Southeast Asia, and Africa, where small, fuel-efficient cars remain highly popular among consumers.

The company also maintained a competitive edge in hybrid and electric vehicle segments, aligning with Japan’s push for cleaner mobility and reduced carbon emissions in the transport sector.

Nissan faced challenges in shifting consumer preferences toward electric vehicles, restructuring global operations, and addressing legacy model demand declines, which contributed to the first annual sales lag behind Suzuki.

Market observers said the 2025 sales data indicated increasing competition among Japanese automakers and underscored the importance of global diversification and product innovation for sustained growth.

The year’s results highlight the resilience of Japan’s auto industry, with Toyota and Honda retaining leadership positions while Suzuki demonstrates strategic gains in key international markets globally.

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