Nissan Closes Major Car Plant in China

Even the Chinese styling couldn’t help its sales

Amidst cut-throat competition in the Chinese market, Nissan have announced the plan to close a massive manufacturing plant in Changzhou, Jiangsu Province, in an effort to cut production and stem losses which are crippling the Japanese auto manufacturer according to reports carried in the Nikkei Asia publication.

The closure is probably the result of overcapacity in the Chinese market for Internal Combustion Engines and EVs alike that has spurred a major downturn in the sales for Nissan in that territory. 

Most Japanese firms have been slow on the uptake for EVs which they see as being only a part of the solution, preferring to have a mix of EV, PHEV, ICE and even Hydrogen cars in their line-ups.

The plant in Changzhou was a relatively modern one, opened in November 2020, and owned jointly between Nissan and the state-owned auto manufacturer Dong-Feng Motor.  Capable of churning out 130,000 or about 10% of Nissans total production in China. 

For now, the SUVs that had been assembled at the plant will be moved to other capacities that are ‘better positioned to supply the demand for Nissan cars in the market’.

Sales for Nissan models dropped 16.1% since last year and another 1% in the first quarter of 2024.

All foreign manufacturers are reporting a drop in the sales of their vehicles in the market as the perception of the quality and functionality of China designed, built, and owned car brands has surged. 

Mitsubishi have already announced that they no longer make cars in the market and both Honda and Toyota are cutting jobs and making ‘adjustments to production’ in the market.

Could be worse though, Tesla have become a bit of a joke in the market with Netizens deriding them for lack of Toys and Gizmos compared to Chinese versions.

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