Nissan Motor Co. has announced a significant shift in its global production strategy, driven by the rapid rise of electric and hybrid vehicles in China. The Japanese automaker, which had previously projected sales of 3.15 million vehicles in China for the year, has cut its forecast to between 2.97 million and 3 million units, citing a 22 % decline in first‑half sales and a 32 % drop over the first nine months.
Chief Executive Ivan Espinosa described China as the company’s “biggest challenge,” noting that “demand is weaker, competition is intensifying, and the shift to new energy vehicles is happening faster than expected.” In response, Nissan plans to reduce petrol‑engine production in the country while ramping up the manufacture of battery electric vehicles (BEVs) and plug‑in hybrids (PHEVs). The company will focus on its N‑series lineup, which includes electric and hybrid models, and will export some petrol‑based vehicles to other markets.
While China’s government has heavily subsidised its domestic EV industry, allowing local manufacturers to compete aggressively against global rivals, Nissan’s sales in the region have suffered. The automaker’s flagship Sylphy saloon, traditionally powered by petrol, has seen its market share erode as consumers gravitate toward cleaner alternatives.
In contrast, Nissan has reported stronger sales in its home market and in North America, where the transition to electric vehicles has been slower due to policy changes, such as the removal of federal incentives under the previous U.S. administration. This divergence underscores the challenge for multinational automakers that must balance the profitability of internal‑combustion engines with the need to stay competitive in a rapidly electrifying market.
Back in Europe, Nissan has taken a more cautious stance. In the United Kingdom, the company has lobbied against tightening the zero‑emission vehicle mandate, arguing for the continued sale of petrol cars beyond 2035. This position has sparked debate among environmental advocates who point to growing consumer demand for EVs in the UK.
Overall, Nissan’s strategy reflects a broader industry trend: as China accelerates its EV adoption, global automakers are re‑evaluating production footprints and product portfolios to align with shifting consumer preferences and regulatory landscapes.
Source: The Guardian World
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Editorial note: This is an original news report prepared from the attributed source material with AI assistance. It is not a reproduction or translation of the original article.
