(Tokyo) The Japanese car manufacturer Nissan announced on Friday that it had ceased production in one of its factories in China, where it is suffering greatly from competition from local manufacturers, champions of low-cost electrics.
Located in Changzhou, near Shanghai, this joint venture factory between Nissan and the Chinese Dongfeng had a production capacity of 130,000 vehicles per year, a spokesperson for the Japanese manufacturer told AFP.
This represents approximately 8% of Nissan’s current total production capacity in the country (1.6 million vehicles).
“Dongfeng Nissan has stopped producing at its Changzhou factory and this is part of our optimization,” according to a brief statement from the Japanese manufacturer sent to AFP, confirming information published earlier Friday in the economic daily Nikkei.
Nissan sold about 800,000 vehicles in China last year, just 50 percent of its production capacity in the country.
The group, however, remains determined to turn the tide in China, its second main market after the United States, by developing electrified models specifically for this country and improving its competitiveness there.
At the end of March, Nissan set itself the objective of recovering its sales in China to one million units per year within three years.
The Japanese manufacturer also plans to use part of its existing production capacity in this country for export from 2025, at a rate of 100,000 units per year.
