Analysts said that to reverse the trend, Japanese carmakers should put more new models on the market and make stronger efforts in marketing and advertising.
They add that the islands row is forcing Japanese brands to change their conservative strategies.
On Feb 26, Dongfeng Nissan premiered the new generation Teana in Guangzhou.
Ren Yong, deputy general manager of the joint venture, told reporters at a news conference that the company aims to be one of the industry leaders with more powerful, active and aggressive product offensives.
Guangqi Honda's executive deputy general manager Yao Yiming said his company will introduce more new cars as soon as possible to cater to Chinese consumers.
Guangqi Honda will release three new models in China this year, an unprecedented number in the company's history.
The models include the new Honda Accord that will go on sale in the last half of the year, Yao said.
While moving to enrich their lineup, Japanese carmakers are also expanding dealership networks.
Yao said Guangqi Honda will add 200 new dealer outlets, most of them in smaller cities in the central and western regions.
In another development, Toyota's two Chinese joint ventures - FAW-Toyota and Guangqi Toyota - both announced they will begin work on independently developed brands for sale in China this year.
Toyota China announced earlier it has a goal of selling 900,000 vehicles this year, the most in its history.
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