Nissan is scaling back its petrol car production in China as the demand for electric vehicles continues to rise in the world’s largest automotive market. The Japanese automaker is adapting to the rapid shift towards electric and new-energy vehicles by focusing on expanding its manufacturing of battery-powered and plug-in hybrid vehicles under its N series.
The company has adjusted its annual sales forecast to a range between 2.97 million and 3 million vehicles, a decrease from the previous estimate of 3.15 million. This revision comes as Nissan faces weaker demand and increased competition in China, where its sales fell by 32% during the first nine months of the year.
Nissan CEO Ivan Espinosa acknowledged the challenges posed by the swift transition towards cleaner vehicles, which has outpaced expectations and pressured traditional automakers to reevaluate their strategies. In response, Nissan is reducing its local petrol car production while increasing exports, aiming to maintain competitiveness in a rapidly evolving market.
The company is also contending with growing competition from Chinese electric vehicle manufacturers, which have gained a competitive edge through government support and aggressive pricing strategies. This intensified competition underscores the difficulties global automakers face as they adapt to changing consumer preferences.
While Nissan grapples with these challenges in China, it has reported stronger sales performance in Japan and North America, where the transition to electric vehicles has not been as rapid. These regional differences highlight the varied pace of adoption for electric vehicles worldwide and the strategic adjustments required by automakers to navigate these shifts.