Japan's five automakers with operations in China all reported a decline in sales in the country in July. The trend was the same in Thailand where the car manufacturers had typically held a dominant market share.

Toyota says sales in China fell 6.1 percent from the same month last year to about 143 thousand vehicles.
Honda had a tougher time of it, with sales sliding 41.3 percent to just short of 53 thousand units.

The slump in China reflects the shift in demand in the country toward electric vehicles.

Consequently, Japan's carmakers are revamping their strategies, which includes exiting China completely or slashing production there.
A similar scenario is playing out in Thailand as Chinese EVs take a bigger share of that market.

All 5 Japanese carmakers that have reported sales in the country say shipments slumped by double-digits in July.

Toyota, which has the biggest share of the Thai market, says sales slid 12.9 percent. Suzuki reported a plunge of 62.2 percent.

Nissan sales skidded 49.3 percent, Honda 27.9 percent and Mitsubishi 31.2 percent.

Like with China, the automakers plan to close or merge factories in Thailand.

However, for global sales, eight Japanese automakers reported a more mixed performance in July. Mazda, Daihatsu, Subaru and Mitsubishi saw increases thanks to brisk demand in the US. Toyota, Honda, Nissan and Suzuki reported declines.