Nissan is targetting for more green vehicle production in China. The shift of focus is a part of Nissan’s plan to compete with other automotive companies, especially in terms of the electric vehicle.
Nissan: aims China for the core market, to appeal through technology advancement
The shift of the core market to China is one of Nissan’s key strategy. Currently, the Chinese market could be more profitable than chasing all-out global growth. Other than China, Nissan will also centre the production of its profitable cars for Japan and the United States.
A source from Reuters commented, “before we were saying global, global, global, and China was just part of that strategy.” He further added, “with regionalisation now replacing globalisation, we have to improve the cost competitiveness of all the components and technologies that go into a car by going totally local.”
In commencing with the plan, Nissan will involve local industries in parts and technology manufacture. Reuters‘ source said this will help Nissan suppress production cost and the struggling Japanese carmaker in competing with major global rivals, including Chinese firms that appeal with lower-cost.
Accordingly, China might be able to see new cars from Nissan this year. The cars are the new all-electric Ariya crossover, a revamp of its X-Trail SUV and a hybrid Sylphy compact car with e-Power technology. Reuters also noted that Nissan might launch at least one new car every year through 2025. The new cars might either be fully electric or hybrids with autonomous and smart driving technology.
In the meantime, Nissan decided to remain discreet. Though, a spokesman from Nissan did confirm the launching of Ariya in 2021. Nissan’s spokesman also added, “China is a core market for Nissan and Nissan is getting prepared to launch a slew of technologies including e-Power technology to fulfil customers’ aspirations.”
More rivals are coming for Nissan
Nissan was one of the pioneers in fully electric cars production. However, the Japanese automaker is now falling behind Toyota and Honda. Moreover, price-competitive Chinese automakers like Geely Automobile, GAC Motor, and BYD, are also slowly gaining recognition in China.
Nissan’s lack of green cars choices is especially affecting its popularity in China. The head of consultancy Automotive Foresight in Shanghai, Yale Zhang said, “Nissan has nothing to show off in terms of green cars in China today.” This, according to Zhang, is “hurting their image and, most importantly, sales.”
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