Nissan Battles Competition in China Amidst Swift Shift to EVs

Summary

  • Nissan has experienced sales difficulties in the global auto market leader, China, due to competition by native car manufacturing brands and a quick transition towards Electric Vehicles (EVs).
  • An alliance with Tsinghua University to establish a research center is Nissan’s strategic move to better understand and cater to the Chinese market.
  • Nissan’s sale in China comprised slightly above 20% of its total 2.8 million vehicle sales globally within the first 10 months of the present year, a drop from one-third in the comparable period last year.
  • The research center buttresses an existing partnership with Tsinghua aimed at studying intelligent mobility and self-driving technology since 2016.

Nissan Struggles in China- The World’s Top Auto Market

Nissan (OTC:) alongside other auto manufacturers from Japan, has seen a stiff sales challenge in China’s automobile market, the world’s largest, propelled by the surging popularity of local brands and stiff pricing competition amidst a brisk transition to EVs.

Nissan-Tsinghua Collaboration to Understand Chinese Market

“We anticipate that this proposed partnership will advance our understanding of the Chinese market and shape strategies that resonate with the Chinese clientele,” proclaimed Nissan’s President and CEO, Makoto Uchida.

Nissan’s Reduced Market Share in China

China’s contribution to Nissan’s total worldwide vehicle sales of roughly 2.8 million over this year’s initial ten months is a tad above one-fifth, a decline from more than one-third during last year’s corresponding period.

Launch of Joint Research Center with Tsinghua

The inauguration of the research center marks a progression of Nissan’s collaborative research initiatives with Tsinghua initiated in 2016, which primarily investigated intelligent mobility and autonomous driving technology.

In terms of trading, understanding Nissan’s strategy to strive in the Chinese market, the largest global car consumer, could impact investors’ decisions. This move may influence Nissan’s shares and even the JPY currency given that it is a significant Japanese auto corporation.

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