In China, local automobile brands are flooding the electric vehicle segment with “cheap” products, cutting corners from the foreign manufacturers present. Nissan has just paid the price but does not intend to give up.
- 06/24/2024
- Laurent Lepsch
The Chinese factory of the Nissan/Dongfeng joint venture located in Changzhou (not far from Shanghai), closed the curtain at the end of last week. With a production capacity of 130,000 vehicles per year, this site represented approximately 8% of Nissan’s current total production capacity in the Middle Kingdom. This shutdown of the Nissan plant in Changzhou reflects the difficulties of foreign manufacturers to succeed in China in the face of fierce organic competition which produces and sells low-cost electric vehicles.
Target 1 million vehicles sold in China by 2027
Result, the Japanese car manufacturer saw its vehicle sales in China fall by 24.1% in 2023 in volume (-16.1% at constant scope), distributing around 800,000 vehicles there last year, or barely 50% of its production capacity in this country. However, Nissan does not intend to abandon the vast Chinese market, its second in volume behind the United States, setting itself the objective of recovering its sales in China to one million units per year within three years.
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