The latest news is that Nissan has begun considering reducing China's production capacity by up to 500000 vehicles. The current annual production capacity is about 1.6 million vehicles, equivalent to 30% of China's annual production capacity.

According to data, Nissan's production in China in 2023 decreased by 24% year-on-year, to 793000 vehicles, and has once again fallen below the 1 million vehicle mark in 14 years. Nissan's sales in China in 2018 were 1.56 million units, once ranking first among Japanese cars, but its current operating rate is only half of its peak.

In addition, Honda plans to reduce China's production capacity by 20% to around 1.2 million vehicles. Honda has a total annual production capacity of 1.49 million vehicles through two joint ventures with China's large state-owned enterprises, Guangzhou Automobile Group and Dongfeng Automobile Group.

Currently, while the share of Japanese cars is declining, Chinese cars are growing rapidly. In 2023, the proportion of Chinese brand cars in domestic passenger car sales will increase to 56%, and the proportion of Guangzhou Automobile Group's independent brand cars will increase to over 30%. In the EV field, BYD has risen.

It is reported that China's new car sales in 2023 reached 25.18 million units, ranking first in the world and about 1.5 times the size of the second ranked United States. Not only is the market size large, but EVs are also the most popular in the world, and IT (information technology) functions are also leading.

The export volume of EV by Chinese enterprises is also increasing. In 2023, China's automobile exports increased by 58% compared to 2022, reaching 4.91 million vehicles, surpassing Japan and jumping to the world's first place for the first time. EVs are driving overall growth and expanding their exports to Europe and Southeast Asia. Chinese manufacturers are promoting localized production, and BYD plans to produce in Thailand and Brazil.

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Name: John Chen

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