Losing Competing With Local Brands, Nissan Stops Factory Production In China

JAKARTA - Shocking news came from Nissan. The manufacturer based in Yokohama, Japan has stopped production of its plant in Changzhou, China because it is still unable to compete with local manufacturers and is trying to optimize its operations.

Launching Reuters, Monday, June 24, the factory is operated together with local partner Nissan Dongfeng Motor in producing the Qashqai model with an annual capacity of around 130,000 units per year.

The manufacturer has operated eight factories in China through a joint venture with Dongfeng, but they have lost the market in the country as local brands move quickly in developing affordable electric vehicles.

Of Nissan's total production capacity of 1.6 million vehicles worldwide, the Changzhou plant accounts for 8 percent of the total.

Earlier in March, this Japanese-based manufacturer launched a strategy plan "The Arc" consisting of launching 30 new models for the global market in 2026, with 16 of them electric-driven vehicles (EVs).

In addition to introducing electrified vehicles, Nissan will also update 60 percent of its global internal combustion engine (ICE) lineup, with the aim of increasing annual sales to 1 million units.

Furthermore, they plan to reduce the production cost of next-generation electric vehicles by 30 percent, paving the way for the balance of costs between EVs and ICE vehicles by 2030.

Nissan also detailed several models to be launched for several markets, such as eight New Energy Vehicle (NEV) models in China, seven models in the US and Canada, five models in Japan and the Middle East, as well as three models in India and Africa, and two models in Oceania.

Despite maintaining a balance between ICE and EV in the next two years, Nissan plans to increase investment in electrification by more than 70 percent by 2026. Thus, it is hoped that Nissan's global sales of electric vehicles can increase 40 percent by 2026 and achieve growth to 60 percent by 2030.