Major News! Nissan, Honda plan to cut production by up to 30%!

The latest news reveals that Nissan has started to consider cutting its production capacity in China by as much as 500,000 vehicles. The current annual production capacity is approximately 1.6 million vehicles, which accounts for 30% of China's annual capacity. According to the data, Nissan's production in China dropped by 24% year-on-year in 2023, falling to 793,000 vehicles and breaking below the 1 million mark for the first time in 14 years. Nissan's sales in China reached 1.56 million vehicles in 2018, once ranking first among Japanese automakers, but the current rate of operation is only half of the peak value.

  Additionally, Honda is also planning to reduce its production capacity in China by 20%, to about 1.2 million vehicles. Honda’s total annual production capacity, through its two joint ventures with large Chinese state-owned enterprises Guangzhou Automobile Group and Dongfeng Motor Group, is 1.49 million vehicles.

  As the market share of Japanese automakers declines, the Chinese automotive industry is experiencing rapid growth. In 2023, Chinese brand cars accounted for 56% of domestic passenger car sales, while Guangzhou Automobile Group's own brand exceeded 30%. In the field of electric vehicles (EVs), BYD (Build Your Dreams) is emerging as a leader.

  It is reported that China's new car sales reached 25.18 million units in 2023, ranking first in the world, with a market size about 1.5 times that of the United States, which ranked second. Not only is the market large, but EVs are the most widely spread in the world, and IT (information technology) functionalities are also leading. The export volume of Chinese EVs is likewise increasing. In 2023, China's automotive exports were up by 58% compared to 2022, reaching 4.91 million units, surpassing Japan to become the number one in the world for the first time. EVs are driving overall growth and are expanding exports to Europe and Southeast Asia. Chinese manufacturers are progressing with localized production, and BYD plans to produce in Thailand and Brazil.