China’s state-owned automotive giant, Guangzhou Automobile Group (GAC), is making a bold move into the Japanese electric vehicle market starting in summer 2026. This isn’t just another entry, it’s a strategic push for GAC’s Aion brand to expand beyond China’s incredibly competitive domestic scene. They’re not alone, either. BYD has already set up shop in Japan, and now GAC is joining the fray. It looks like the Japanese market is about to get a serious jolt of Chinese EV innovation.
Aion’s Two-Pronged Attack: UT Hatchback and V SUV
GAC plans to kick things off by selling its Aion EVs through local dealerships, initially aiming for 200 orders in 2026 and then ramping up to a ambitious 2,000 units in 2027. Their starting lineup features two compelling models: the compact Aion UT hatchback and the more spacious Aion V SUV. The Aion UT will hit the market around 3.3 million yen, which is roughly 14,980 USD, while the Aion V SUV will start at 5 million yen, or about 22,700 USD. Both of these Aion models will come ready to support Japan’s CHAdeMO fast-charging standard, making them pretty practical for daily use. Initially, GAC is focusing on corporate clients, targeting businesses that need reliable, efficient vehicles for their fleets.
GAC’s Global Ambitions and Domestic Challenges
GAC Group, a powerhouse established back in 1997, already has some serious street cred, collaborating with titans like Toyota and Honda in joint ventures within China. They launched the Aion EV brand in 2018, completely dedicated to electric mobility. While GAC moved a solid 2 million vehicles in 2024, including both their EVs and joint-venture models, the domestic market has been a bit of a rollercoaster lately. Intensified competition has slowed things down, with total sales from January to September 2025 dropping 11 percent year-on-year to 1.18 million units. Even the Aion brand felt the pinch, with sales down 20 percent to 180,000 units. This is a common story in China, where the EV market is a hotbed of innovation and aggressive pricing.
Expanding Horizons Beyond China
Facing a fiercely competitive home market, GAC has been strategically looking overseas since 2023. They first ventured into Southeast Asia, with Thailand as their initial launchpad, and even announced plans for a UK market entry in 2025. Japan is the next big target, and it makes sense. The Japanese EV market is still finding its footing, but GAC sees a real opening in the business-use vehicle segment. This isn’t just GAC’s vision either; other Chinese automakers are eyeing Japan too. Geely’s Zeekr brand, for example, is also making inroads, showing a broader trend of Chinese brands expanding their global footprint.
BYD’s Foothold and Japan’s EV Landscape
BYD has been active in Japan since 2023, and their sales figures are certainly looking up. From January to November 2025, they sold 3,508 vehicles, marking a significant 64 percent year-on-year increase. BYD isn’t resting on its laurels either; they’re planning to roll out the Racco, a light EV designed specifically for international markets, in 2026. This Racco will even feature sliding doors, a popular design touch in Japan. However, the Japanese EV market still has a lot of room to grow. Only 55,380 units were sold through November 2025, which represents a mere 1.5 percent of total new car sales. That’s one of the lowest shares among developed markets, creating an interesting challenge and opportunity for brands like GAC and BYD.
Japanese manufacturers aren’t taking this sitting down, of course. Toyota has its updated bZ4X, Nissan’s got a new Leaf on the way, and Suzuki’s getting into the game with their first EV, the e-Vitara. As both Chinese and Japanese companies flood the market with new EV offerings, it’s safe to say that the competition in Japan is about to get seriously intense. For consumers, that can only mean more choices and better innovation. It’s an exciting time to be an EV enthusiast, especially watching these Chinese players make their mark on the global stage. It highlights China’s deep experience in the sector, from battery production to cutting-edge EV systems, and it’s a clear signal that the future of mobility is global, competitive, and electric.
