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flag Japan’s auto industry warns of existential crisis due to Chinese competition, labor shortages, and supply chain issues.

flag Japan’s auto industry is facing an existential threat from global competition, especially from state-backed Chinese automakers, prompting the Japan Automobile Manufacturers Association to warn the sector is "on the brink of survival." flag Leaders including Toyota’s CEO and JAMA’s vice president say the traditional Keiretsu system is no longer enough, urging faster collaboration, greater investment in software, AI, and robotics to combat a projected 20% labor shortfall. flag The industry is adapting to stricter emissions rules, trade barriers, and shifting consumer demand with a multi-pathway strategy. flag Supply chain disruptions from the Middle East crisis—where 70% of aluminum and plastic raw materials originate—raise procurement concerns. flag China has surpassed Japan as the top vehicle origin in Australia, with Japanese brands like Honda and Mazda declining due to limited models and higher prices, though Toyota says Australian deliveries remain unaffected.

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