Nissan Closes First Factory in China Due to Poor Sales

Electric Vehicle Competition Intensifies in the Chinese Market

Japanese automaker Nissan has closed a factory in China for the first time, due to competition from Chinese-made electric vehicles.

According to major Japanese media on the 22nd, Nissan closed its passenger car factory in Changzhou, Jiangsu Province, the day before.

This factory, operated through a joint venture with a Chinese state-owned enterprise, has an annual production capacity of 130,000 units, accounting for about 10% of Nissan's total production capacity in China.

Major Japanese media explained that the reasons for Nissan's factory closure include "intense price competition with local companies and a limited lineup of electric vehicles that sell well in China."

Nissan's sales volume in China last year was 790,000 units, down 16% from the previous year. According to the China Association of Automobile Manufacturers (CAAM), the share of new energy vehicles, including electric vehicles, in new car sales in China last month rose to 40%, an increase of 9 percentage points compared to the same month last year.

Other Japanese companies, relatively behind in electrification such as electric vehicle development, are also withdrawing from or downsizing their businesses in the Chinese market.

Mitsubishi Motors withdrew from the Chinese market last year by ending its joint venture with Guangzhou Automobile Group. Honda also decided last month to reduce staff at its Chinese joint venture.