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Nissan shuts down factory in China amidst decreasing sales figures.

Manufacturing capability or output potential

Nissan closes plant in China due to falling sales figures
Nissan closes plant in China due to falling sales figures

Nissan shuts down factory in China amidst decreasing sales figures.

Car maker Nissan has declared the shutdown of a facility in the People's Republic of China due to troubles on the Chinese market. This includes the production facility in Changzhou, close to Shanghai, which Nissan runs jointly with Chinese firm Dongfeng, as stated by the company. Approximate yearly output from this facility amounts to around 130,000 vehicles - equating to around 8% of Nissan's Chinese production capacity.

Nissan, much like other foreign automakers, has been dealing with intense competition from domestic companies, particularly in the electric vehicle sector, where these local firms have been fiercely cutting prices. Nissan's sales in China dwindled by 24.1% in the preceding year. The 800,000 units sold only account for roughly half of Nissan's Chinese production capacity.

Nevertheless, Nissan shows no signs of abandoning its second largest market following the US. In China, the Japanese aim to regain footing in the future through tailor-made electric vehicles designed exclusively for the market. They anticipate reaching annual sales of one million units once more within the next three years. From 2025, manufacturing for exports will also take place in China.

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Despite the 24.1% decrease in sales last year, Nissan intends to boost its Chinese market presence by producing tailor-made electric vehicles, aiming to sell one million units annually within the next three years. Due to the factory shutdown, the company will need to increased its production capacity at its remaining Chinese plants, including the one for export production starting from 2025, given the current annual output of 130,000 vehicles from the Changzhou plant only represents 8% of Nissan's overall Chinese production capacity.

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