Japanese automakers are using motorsports (auto racing) as a stage for new car development and technology validation, boosting their presence.

GR Yaris Morizo RR from Toyota Group's high-performance brand Gazoo Racing (GR) is on display at the 2026 Tokyo Auto Salon. The GR Yaris is customized to the tastes of Chairman Toyoda Akio. /Courtesy of Tokyo Auto Salon Joint Reporting Team

Nikkei Asia reported on the 1st (local time) that Japanese automakers are using circuit races and off-road rallies as research and development (R&D) testbeds.

Japan's motor racing history spans more than 100 years, but it went through a prolonged slump after the bursting of the asset bubble in the 1990s. At the time, automakers viewed motor racing more as a marketing activity than as vehicle development and cut investment. Recently, however, the industry has been improving engine, drivetrain, and body performance based on data obtained from repeatedly testing vehicles in the extreme conditions of motor racing.

A prime example is Toyota's high-performance GR Yaris. Launched in 2020, the GR Yaris was developed with an eye on competing in the World Rally Championship (WRC) and is said to have undergone continuous performance upgrades through actual race participation. In fact, Toyota Chairman Toyoda Akio calls the method of verifying technological evolution at the track "open development (Open Development)."

Toyota last year entered a GR Yaris fitted with an experimental engine in an endurance race. On May 5, at the Nürburgring 24-hour endurance race in Germany, when abnormal vibrations occurred in a Toyota car, the maintenance team replaced the entire engine and drivetrain. Takahashi Tomoya, president of Gazoo Racing, Toyota's motorsports division, said this was "a decision not to compromise on vehicle performance and an example that showcases the results of talent development."

Not only Toyota but other Japanese automakers are also returning to the motorsports stage. Honda said it is returning to Formula One (F1) this year and will supply Aston Martin with a new power unit (PU) developed to meet F1's new technical regulations.

Mibe Toshihiro, Honda's global chief executive officer (CEO), declared the F1 return in Jan. and predicted, "High-efficiency combustion, high-output motors, and sustainable fuel technologies accumulated through F1 will be applied not only to mass-production cars but also across future mobility such as urban air mobility (eVTOL)."

Nissan also set a goal to expand its high-performance Nismo (NISMO) lineup and increase sales by 50% by 2028. In Apr., at the 2026 New York International Auto Show (NYIAS) held in New York, the United States, Nissan unveiled the 2027 Z Nismo, which brings back the manual transmission.

Nikkei Asia analyzed that Japanese automakers are expanding their presence on a stage once dominated by European companies by actively using auto racing as a means of technology development and brand competitiveness enhancement.

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