Electric cars have wounded Japan's automobile industry. Time will tell whether it is a mortal wound

The rise of electric vehicles is disrupting Japan’s auto industry and forcing a strategic reset across major brands.

Toyota has slowed its push into pure EVs, doubling down on hybrids, hydrogen, and solid-state batteries while fixing weak EV models.

Despite that shift, Toyota’s profits have fallen amid higher costs and U.S. tariffs; Honda has posted annual losses for the first time in its history.

The transition to EVs is reshaping global competition and challenging the business model that once made Japanese automakers dominant.