Japan’s three largest automakers are losing ground rapidly in China, the world’s largest auto market, as homegrown electric vehicle manufacturers accelerate past them and reshape the competitive landscape that Japanese brands once dominated.
Sharp declines across the board
Toyota, Nissan and Honda all posted double-digit sales declines in China during the first half of 2026, according to Japan’s Kyodo News and China’s state-run Global Times. Toyota’s sales totaled 694,700 vehicles, down 17.1% from the same period a year earlier. Nissan’s sales fell 15% to 237,000 vehicles. Honda suffered the steepest decline, with sales plunging 34.7% to 205,800 vehicles, extending a streak of year-over-year monthly declines that has now stretched 29 consecutive months through June.
Honda’s struggles have been particularly acute at the brand level. Its joint venture GAC Honda saw sales fall 46% year-over-year, while Dongfeng Honda’s sales dropped 22%. In June alone, Honda’s retail sales in China plunged 44.5% year-over-year. The severity of the decline has prompted structural changes within the company: GAC Honda’s Huangpu plant in Guangzhou, which has produced models including the ZR-V and Fit, is scheduled to end production this June, while Dongfeng Honda’s Wuhan plant is expected to close in 2027. Honda’s overall sales volume in China has collapsed from roughly 1.66 million vehicles in 2020 to approximately 650,000 today.
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A steep decline in Japanese market share
The combined slump reflects a broader, multiyear erosion of Japanese automakers’ position in China. According to the China Association of Automobile Manufacturers, Japanese brands’ collective market share in China fell steadily from 24% in 2020 to the single-digit range last year, a five-year collapse that industry analysts describe as a generational shift in the market rather than a temporary downturn.
Falling behind on electrification
Analysts and industry observers point to Japanese automakers’ slow transition to electric and plug-in hybrid vehicles as the central driver of their declining fortunes in China. Cui Dongshu, secretary-general of the China Passenger Car Association, offered a blunt assessment of the shift to the Global Times. “Japanese companies relied too heavily on conventional hybrid vehicles and failed to respond properly to changing demand for plug-in hybrids,” Cui said, adding that Japanese brands have also lagged in new model development, China-specific product strategies, and smart vehicle features aimed at attracting younger buyers.
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That assessment echoes concerns raised in a 2025 report by global consulting firm Roland Berger, which found that Japan’s broader auto industry had failed to keep pace with the global shift toward electrification even as other major markets accelerated their transition. The slower pivot has left Japanese brands increasingly reliant on gasoline and conventional hybrid vehicles at a moment when Chinese consumers have rapidly shifted toward pure electric and plug-in hybrid alternatives.
Chinese brands capture the momentum
While Japanese automakers have struggled, Chinese homegrown manufacturers have moved aggressively to capture market share through electric and smart vehicle offerings. According to the China Passenger Car Association, BYD led China’s passenger car market with a 13.2% share as of April, followed by Geely and Changan. Newer electric vehicle makers, including Leapmotor and Xiaomi, have also gained visibility in the market, adding further competitive pressure on established automakers, both foreign and domestic.
China’s broader new energy vehicle market has continued expanding rapidly even as the overall auto market has softened. The China Association of Automobile Manufacturers reported that the country produced 7.438 million new energy vehicles and sold 7.446 million in the first half of 2026, both figures surpassing 7 million and marking increases of 6.7% and 7.3%, respectively, from a year earlier. New energy vehicles accounted for 49.6% of total new car sales during the period, with the technology’s penetration rate reaching 58.5% as of June, up roughly 13 percentage points from a year earlier. Separate industry tracking had shown that penetration briefly surpassed 60% for the first time in April, underscoring how quickly the shift away from conventional gasoline vehicles has taken hold.
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Broader market weakness compounds the pressure
The struggles facing Japanese automakers have also coincided with broader softness across China’s overall passenger vehicle market. According to Reuters, China’s domestic passenger vehicle sales fell 23.4% year-over-year to 1.62 million units in June, marking the ninth consecutive month of year-over-year decline for the broader market. Rising oil prices tied to tensions in the Middle East have further dampened demand for gasoline-powered vehicles specifically, compounding the challenges already facing Japanese brands that remain more dependent on conventional powertrains than many of their competitors.
German luxury brands face similar headwinds
Japanese automakers are not alone in facing steep declines in China. German luxury manufacturers have also reported significant year-over-year drops, with Mercedes-Benz falling 28%, BMW down 20.4%, and Volkswagen decreasing 25.9% during the same period. The combined sales of Mercedes-Benz, BMW and Audi were only slightly higher than Volkswagen’s China sales alone during the same period a year earlier, according to industry data, illustrating how broadly the shift toward domestic EV brands has squeezed established international automakers across price segments, not just in the mainstream market where Japanese brands have traditionally competed.
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A difficult road back
Industry analysts widely agree that reclaiming lost ground in China will not come easily for Japanese automakers. Cui said Chinese homegrown brands have already established a firm position in the electric and smart car markets, making it unlikely that Japanese companies will recover their previous market standing in the near term. Toyota has shown some signs of adaptation, with localized electric vehicle sales in China surging 88% in April, suggesting the company may have more success than its rivals in adjusting its strategy, even as its overall China sales volumes have continued to decline.
With China’s new energy vehicle penetration continuing to climb and domestic brands showing no signs of ceding the ground they’ve gained, Japanese automakers face a critical period in determining whether they can meaningfully accelerate their own electrification strategies or risk further erosion of their once-dominant position in the world’s largest auto market. How quickly Toyota, Nissan and Honda can bring competitive electric and plug-in hybrid models specifically tailored to Chinese consumer preferences is likely to shape their trajectory in the market for years to come.
A total off 66 employees were made redundant when the business collapsed into administration
A closed sign(Image: Getty Images)
A 53-year-old West Midlands engineering firm has ceased trading despite “many efforts to keep the company buoyant”, with 66 people losing their jobs.
Cradley Heath-based Mechatherm entered administration last week just days after the company announced the death of its chief executive.
Helen Wheeler-Jones, Timothy Andrew Higgins and Edward Williams of PwC were appointed joint administrators on Friday (July 24).
In a statement on LinkedIn the company wrote: “After over 50 years of operations, it is with sadness that we have to announce that Mechatherm will cease trading today, our doors will close for one last time.
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“Despite many efforts to keep the company buoyant, a suitable solution has not be found and Mechatherm now finds itself now undertaking a process of administration.
“Over the years Mechatherm has been involved many prestigious and successful projects worldwide, involving many clients and suppliers who have been part of Mechatherm’s journey and evolution as a company. We thank you all for your attention, collaboration and your consideration, it is with great fondness that our team will reflect on the experiences and opportunities that you have presented to us.”
Mechatherm was an engineering business, specialising in the design, manufacture and installation of industrial furnaces and aluminium casthouse equipment, and employed 70 people.
According to PwC the directors had been hoping to sell all or part of the business following a period of “significant financial strain” arising from contract losses, increasing creditor pressure and constrained liquidity, but received “no viable offers”.
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Ms Wheeler-Jones, joint administrator and director at PwC, said: “We know how difficult and unsettling this news will be for those affected and are providing them with appropriate support. We are working closely with the Redundancy Payments Service to ensure employees can access their statutory entitlements as soon as possible.”
The news comes just days after Mechatherm announced the death of its chief executive, Mark Allen.
In a separate statement on LinkedIn last week, the business wrote: “Mark dedicated so much of his career to Mechatherm International, leading with passion, integrity, and an unwavering commitment to both our customers and the Mechatherm staff. His knowledge, determination, and sense of humour made a lasting impact on everyone who had the privilege of working with him.
“Mark was more than a leader – he was a mentor, colleague, and friend to many. He will be greatly missed, but his legacy will continue to inspire us. His saying ask for forgiveness not permission, meant we always knew he had our backs no matter what. Our thoughts are with Mark’s family and loved ones at this incredibly difficult time.“Rest in peace, Mark, we all love and miss you.”
A 45-year-old Bronx man with a criminal history stretching back more than two decades has been charged with murder in the fatal shooting of a 12-year-old boy, the son of a retired New York Police Department officer, who was struck by gunfire while riding his bike near a Bronx bodega Saturday.
A chaotic scene captured on video
Police responded to reports of multiple people shot outside Wanda Deli Grocery at 104 Elliot Place in the Mount Eden section of the Bronx shortly before 5 p.m. Saturday. Surveillance footage released by the NYPD showed a group of men engaged in a physical altercation on the street near the intersection of Walton Avenue and Elliot Place, just before one of them pulled out a gun and opened fire. The video showed a 12-year-old boy, later identified as Jacob Freytes, standing near his bicycle on the sidewalk directly beside the confrontation when the shooting began. Additional footage showed Freytes running into the bodega, holding his chest, before collapsing inside near a deli worker and a customer.
A 45-year-old career criminal with a lengthy arrest history dating back to 1999 has been charged with murder in the fatal shooting of the 12-year-old son of a retired NYPD officer outside a Bronx bodega. pic.twitter.com/bU2kXzbjCf
Freytes was struck in the shoulder and rushed to NYC Health and Hospitals/Lincoln, where he was pronounced dead. Two other men, ages 25 and 34, were also struck by gunfire during the shooting; the 25-year-old was hit in the buttocks and the 34-year-old in the foot. Both are expected to survive, and both were listed in stable condition after being treated.
A father who was out of state
Freytes was the son of a retired NYPD officer. According to family members, his father, an NYPD sergeant, was traveling in Connecticut at the time of the shooting. A relative described Freytes as a well-liked, respectful child within the neighborhood. “He was a good kid,” the relative said. “He’s gonna be missed.”
Suspect arrested outside his home
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NYPD Commissioner Jessica Tisch announced Sunday morning that detectives had arrested William Ferrer, 45, of the Bronx, taking him into custody outside his home. Ferrer faces charges of second-degree murder, first-degree manslaughter, second-degree attempted murder, first- and second-degree assault, and second-degree criminal possession of a weapon, according to the NYPD; some reporting has cited additional counts of attempted murder and assault beyond the initial charges announced. Attorney information for Ferrer was not immediately available.
Announcing the arrest, Tisch emphasized the senselessness of the shooting. “No arrest can ever ease the pain of this unimaginable loss,” Tisch said, adding that the department would continue working to seek justice for Freytes. Police said investigators believe the shooting may be connected to gang activity, though the underlying dispute between the individuals in the confrontation had not been fully detailed publicly as of Sunday.
A lengthy record predating the shooting
According to law enforcement sources cited by the New York Post, Ferrer has had multiple prior encounters with law enforcement dating back to 1999, with a record that reportedly includes past arrests on allegations of drug possession, driving while intoxicated, possession of stolen property, menacing and criminal contempt. It remains unclear how many of those prior arrests resulted in convictions.
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A community in mourning
Fernando Mateo, a spokesman for the United Bodegas of America, addressed the shooting during a Sunday press conference outside the bodega, describing Freytes’ death as a devastating reminder of the continued toll gun violence takes on New York City. Bronx Borough President Vanessa Gibson also spoke out following the shooting, describing the incident as an unimaginable pain for the community in a video statement shared on social media.
New York City’s Office of the Public Advocate also issued a statement mourning Freytes’ death. “Nothing could be more tragic: An innocent child on his bike,” the office wrote, adding that ensuring children’s safety remains a collective responsibility and calling for the urgent implementation of strategies proven to make communities safer.
An investigation that remains active
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According to police, the men involved in the initial altercation fled the scene before patrol officers arrived, and investigators have continued reviewing surveillance footage and interviewing witnesses in the aftermath of the shooting. The NYPD said the broader investigation into the circumstances surrounding the confrontation remains ongoing even after Ferrer’s arrest, as detectives work to establish a fuller account of what led to the altercation turning violent.
Part of a broader pattern of stray-bullet violence involving children
Freytes’ death adds to a string of recent shootings in New York City in which children have been struck by gunfire not directed at them specifically. Earlier this month, an 8-year-old boy was shot in the thigh in the Bronx’s Mott Haven neighborhood while getting off a school bus, an incident that similarly prompted charges against a suspect on counts including attempted murder and reckless endangerment. Such cases have repeatedly drawn public attention to the risks posed to bystanders, including children, when gunfire erupts during unrelated disputes in residential and commercial areas of the city.
What comes next
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Ferrer is expected to be arraigned on the charges against him in the coming days, with the case likely to proceed through the Bronx court system as prosecutors build their case using the surveillance footage, witness accounts and physical evidence gathered at the scene. The NYPD has said its investigation into the shooting remains active, and it remains unclear whether additional individuals involved in the initial altercation may face charges as the case continues to develop. For Freytes’ family and the broader Mount Eden community, the shooting has renewed calls from local officials and advocacy groups for continued efforts to address gun violence affecting bystanders, particularly children, across the city.
The service will start in November and will run twice a week
An easyJet plane
Budget airline easyJet is launching a new direct route from Bristol Airport to the historic city of Strasbourg in France.
UNESCO-listed Strasbourg is home to one of the oldest and most famous Christmas markets in Europe. Each year, the city is transformed during the festive season, with the 2026 market running from November 27 to December 27.
Flights from Bristol to Strasbourg will start on November 20 and will operate twice a week on Mondays and Fridays .
Kevin Doyle, easyJet’s UK country manager, said: “We are delighted to be adding Strasbourg to our Bristol network, offering customers in the South West a new unique destination and we will be the only airline to provide a direct connection.”
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The news comes just days after the carrier confirmed it was expanding its base in Bristol. The airline is adding its 20th plane to the airport in a move it says will support some 400 jobs.
“Another route addition demonstrates our continued commitment to Bristol,” added Mr Doyle.
“With 90 routes now available from Bristol to destinations across Europe and North Africa, we remain focused on providing greater choice, strengthening regional connectivity and making travel easy and affordable for millions of customers.”
EasyJet now offers 91 routes from Bristol to 27 countries across Europe and North Africa, serving around six million customers each year from the airport.
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Recent additions to the network include Reus, Thessaloniki, Seville, Cape Verde and Bari, with Budapest flights starting this winter.
Rupert Lawrie, commercial director at Bristol Airport, said: “The introduction of direct flights from Bristol Airport to Strasbourg gives customers the opportunity to discover one of France’s most beautiful and historic cities.
“Strasbourg is renowned for its stunning architecture, picturesque canals, world-class restaurants, and is home to one of Europe’s oldest and most celebrated Christmas markets.
“easyJet’s continued investment at Bristol Airport reflects the demand for travel from our region and provides even greater choice for customers, enabling them to enjoy an even wider range of destinations from their local airport.”
Berlin police said the suspect was located in a garden allotment complex in the western Berlin borough of Spandau around 6 p.m. Sunday, roughly 20 hours after the attack. Officers from the city’s special police unit said the man rushed toward them holding what was described as a stabbing weapon, prompting officers to open fire. Firefighters attempted to resuscitate him, but he died at the scene.
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Police identified the suspect as Abdul Ballout, a 21-year-old German citizen of Lebanese background who was born in Germany in 2004 or 2005, according to differing accounts from German authorities. German privacy laws initially led domestic outlets to withhold his last name, though it was published by several international news organizations.
A van and a blade turned on a crowd
The attack unfolded Saturday night, when a white van rammed into a crowd of people in Berlin’s Tiergarten park before colliding with a tree. The area was near the closing celebrations of Christopher Street Day, Berlin’s oldest and largest Pride event, named after the New York street that was the site of the 1969 Stonewall riots. According to German Interior Minister Alexander Dobrindt, the attacker used a blade, believed to be a machete, to assault bystanders after crashing the vehicle. A woman was killed in the attack, and at least 29 others were injured, some critically, authorities said.
The violence did not occur along the parade route or at the festival’s closing party near the Brandenburg Gate, but rather several hundred meters away on a path through Tiergarten park, striking a crowd that likely included both festivalgoers and other locals passing through the area.
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A history of radicalization and a prior brush with the courts
German authorities said the attack bore the hallmarks of Islamist extremism. “Everything we see here points to an Islamist terrorist attack,” Dobrindt said, adding that the suspect had undergone radicalization and belonged to what he described as the “Islamist scene.” According to the Berlin Public Prosecutor’s Office, Ballout had allegedly developed a desire to join the Islamic State group’s armed struggle, made a failed attempt to travel to Syria to join the militant organization, and made contact with individuals in Lebanon he believed were affiliated with the group.
While in Lebanon, he was sentenced to three months in prison for inciting religious and sectarian conflict, according to the prosecutor’s office. After serving that sentence, he returned to Germany in November, where he was arrested at Berlin’s international airport and spent six months in pretrial detention. A Berlin juvenile court subsequently handed him a suspended sentence of one year and ten months for preparing a serious act of violence and publishing Islamic State propaganda, and he was released pending appeal. According to German newspaper Die Welt, Ballout had also begun a voluntary deradicalization counseling program, though officials had not yet decided whether he would be formally admitted, having attended only two sessions with counselors who described him as polite and cooperative, even as doubts lingered about whether he intended to genuinely engage with the process.
A nationwide manhunt across trains, airports and borders
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Following the attack, German authorities launched an extensive nationwide search, with police scouring train stations, airports and border crossings in an effort to locate the suspect before he could flee the country. More than 2,200 officers had already been deployed in Berlin since Saturday morning to secure the Pride parade and related events, according to Reuters.
A celebration abruptly halted
The attack cut short what had otherwise been a peaceful Pride celebration, with participants having marched through the city for hours, dancing to techno music and cheering dozens of parade floats before the violence occurred. Organizers canceled the remainder of Saturday’s events, and the attack site remained under lockdown as investigators gathered evidence.
Germany’s leaders respond
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German Chancellor Friedrich Merz condemned the attack in strong terms, saying, “We are open and freedom-loving — and we will preserve and defend that,” and pledging that the case would be investigated and prosecuted with the utmost severity. Separately, Merz described the attack as “a heinous act.” Berlin Mayor Kai Wegner characterized the violence as a direct assault on the city’s open society, writing on social media that the attack targeted “the assembly for a tolerant and peaceful Berlin” and describing Berlin as “the city of freedom.” Wegner later clarified that while security at the event itself had been robust, the attack occurred on a pathway roughly a quarter-mile from the main festival site, an area the perpetrator was ultimately unable to reach due to police security measures already in place.
By Sunday afternoon, mourners carrying Pride flags gathered at the Brandenburg Gate for a vigil, laying flowers, candles and handwritten signs at a growing memorial near the attack site.
A politically charged backdrop
The attack has reignited Germany’s long-running debate over migration and religious extremism, arriving just weeks ahead of closely watched regional elections in which the far-right Alternative for Germany party is currently leading in polling. The AfD has campaigned on mass deportations and stricter border controls, and has previously moved quickly to capitalize politically on earlier extremist attacks in Germany, including a memorial rally it organized in Magdeburg just three days after a deadly Christmas market attack there in 2024.
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Part of a broader pattern in Europe
Saturday’s attack adds to a series of vehicle-ramming and knife attacks attributed to Islamist extremists that Germany has faced in recent years, including the killing of a police officer at an anti-Islam rally in Mannheim in 2024 and a knife attack at a street festival in Solingen months later that killed three people and was claimed by the Islamic State group. Vehicle rammings specifically have remained a recurring extremist tactic across Europe since the Islamic State began promoting the method roughly a decade ago, with researchers documenting several dozen such attacks worldwide since 2000. Germany has remained on heightened alert for the tactic since a truck was driven into a Berlin Christmas market in 2016, killing 12 people, while the deadliest such attack in Europe remains the 2016 Bastille Day attack in Nice, France, in which a truck was driven into crowds, killing 86 people.
What comes next
With the suspect now dead, German authorities are expected to continue their investigation into the attack, including further examination of Ballout’s radicalization history, his prior legal proceedings, and how he came to be released pending appeal before carrying out Saturday’s violence. The case is likely to intensify political debate in Germany in the weeks leading up to the country’s upcoming regional elections, even as the Berlin LGBTQ+ community and the wider city continue to mourn the woman killed and the dozens of others injured in the attack.
Chicago Sky guard DiJonai Carrington sparked one of the WNBA’s biggest off-court storylines of the season this weekend, publicly accusing her former girlfriend, Las Vegas Aces forward NaLyssa Smith, of infidelity with multiple other players in the league.
A viral post during All-Star weekend
The accusation surfaced Saturday during the WNBA’s All-Star weekend in Chicago, when Carrington shared a message on the social media platform Threads that quickly circulated across X, Instagram and other platforms. In the post, Carrington directly named two other WNBA players, writing, “Since mfs wanna be funny today ima be hilarious! yes, nalyssa cheated on me with Deja Kelly and Aaliyah Nye +++ many more.” Kelly plays for the Las Vegas Aces, while Nye plays for the Atlanta Dream.
Screenshots of the post spread rapidly, with thousands of fans weighing in across social media as the allegation quickly became one of the weekend’s most discussed storylines, overshadowing other coverage from All-Star festivities that had included appearances from former President Barack Obama at a practice session earlier in the weekend. As of publication, neither Smith, Kelly nor Nye had issued a public response to the allegations.
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A relationship that began in college
Carrington and Smith had been one of the WNBA’s more publicly visible couples in recent years, with a relationship dating back to 2020, when the two were teammates at Baylor University. Smith went on to become the No. 2 overall pick in the 2022 WNBA Draft following a college career that included an NCAA championship and multiple national awards. She spent her first three professional seasons with the Indiana Fever, earning WNBA All-Rookie Team honors in 2022, before being traded to the Dallas Wings ahead of the 2025 season as part of the deal that sent guard Sophie Cunningham to Indiana. Smith was later traded again that year to the Las Vegas Aces, where she helped the franchise capture the 2025 WNBA championship. The pair also briefly played together as teammates during a stretch of the 2025 season before eventually separating.
Carrington was present for Smith’s championship run last year and publicly celebrated the win at the time, writing on social media, “My baby is a WNBA champion,” and describing Smith as the turning point of the Aces’ season.
A breakup previously described as amicable
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News of Carrington and Smith’s split first emerged publicly in November 2025, at which point Carrington characterized the end of the relationship in relatively neutral terms. Addressing the breakup directly at the time, Carrington said, “We’re good, but we’re not together anymore,” adding that the split had happened on good terms and that the two had simply grown in different directions. That earlier characterization stood in sharp contrast to the tone of Saturday’s post, which painted a considerably more contentious picture of how the relationship had actually ended.
A messy chapter unfolding in public
The situation adds another layer of off-court drama to a WNBA season that has already generated significant attention beyond the court, from roster moves to viral pregame fashion moments involving the league’s biggest stars. Reaction to Carrington’s post was mixed, with some fans expressing sympathy for the public nature of the allegations and others noting the broader challenges that can arise in a relatively small professional league where players frequently date and socialize within the same competitive circles.
Notably, Carrington is scheduled to face off against both Smith and Kelly in upcoming league play, adding an additional layer of attention to the situation as the teams involved prepare to meet on the court in the coming weeks.
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No formal response from those named
As of this report, Smith, Kelly and Nye had not issued any public statements addressing Carrington’s allegations, either individually or collectively. Representatives for the WNBA and the teams involved have similarly not commented publicly on the matter. Given the personal nature of the claims and the lack of any independent confirmation beyond Carrington’s own social media post, the allegations remain unverified beyond what Carrington herself has stated publicly.
A pattern of off-court storylines shaping WNBA coverage
The episode reflects a broader pattern that has increasingly defined WNBA media coverage in recent seasons, where storylines involving player relationships, social media activity and off-court dynamics have at times drawn as much attention as on-court performance. League observers have noted that the increasing visibility of players’ personal lives, driven in large part by widespread social media use among athletes, has made moments like Carrington’s post capable of dominating national sports conversation within hours of being posted, regardless of whether all details have been independently verified.
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With training and competition continuing across the league following All-Star weekend, attention is likely to remain focused on whether Smith, Kelly or Nye offer any public response to Carrington’s claims, and how the situation may factor into upcoming matchups between the players’ respective teams. For now, the allegations remain confined to Carrington’s own account of events, with the league, the teams involved, and the other players named all staying silent as the story continues to circulate widely across social media and sports media coverage.
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