Author | Yang Lu

Editor | Li Guozheng

Produced | Bangning Studio (gbngzs)

'Among all the uncertainties, one thing is certain: we will cooperate with Chinese partners.'

said Isao Sekiguchi, corporate vice president of Nissan Motor Co., Ltd., vice president of Dongfeng Motor Co., Ltd., and general manager of Dongfeng Nissan Passenger Vehicle Company, at the 7th China International Import Expo (hereinafter referred to as CIIE).

On November 6, Nissan showcased its latest business progress in China at this year's CIIE exhibition stand. This was Nissan China's sixth participation in the CIIE in Shanghai. Speaking about the differences this year, Sekiguchi said, 'I hope everyone can have a new and deeper understanding of Nissan's development in China.'

At this year's CIIE, Nissan focused on conveying its image of 'undergoing transformation.'

In the 25,000-square-meter automobile exhibition area, Nissan's red logo stood out prominently. Four vehicles were displayed on the stand, including the Epic concept car, Era concept car, self-driving taxi, and the six-seater large family flagship SUV Nissan TerraPro, which was launched in the Chinese market this year.

In one corner of the exhibition hall was the latest clothing from the Nissan China Design Center. They integrated elements of Nissan's classic car models into the clothing design while combining modern fashion styles—catering to the aesthetics of Generation Z, it is one of Nissan's urgent attempts to reach out to younger users.

▲Shohei Yamasaki

The day before the opening of CIIE, Shohei Yamasaki, chairman of the Nissan China Management Committee, posted that Nissan was 'shifting gears and accelerating' in the Chinese market. He proposed three initiatives for development in China: first, introducing more new energy vehicles; second, fully integrating local advantages with global capabilities; and third, transforming operating models.

Nissan is awakening in China.

In recent years, Nissan's pace in the transition to smart and electric vehicles has slowed significantly, leading to a comprehensive slowdown in sales. On November 6, Nissan China announced its October sales figures—61,200 units, a year-on-year decrease of 16.5%; Dongfeng Nissan sold 57,300 units, of which Nissan-brand sales were 53,000 units and Sylphy sales were 31,900 units—however, Sylphy, as the best-selling model, is more economically priced and contributes limited profit.

Despite the difficulties, Nissan is taking multiple measures in China to accelerate its transition to smart and electric vehicles.

Eager for Transformation

Sekiguchi stated at this year's CIIE that by 2026, Nissan would launch eight new energy vehicle models in the Chinese market, including five Nissan-brand models.

Launching eight new energy vehicle models within two years is an aggressive target, revealing Nissan's eagerness.

In the past, Nissan was slow in transitioning to electric power due to its obvious advantages in the gasoline vehicle market, making it difficult to step out of its comfort zone. Additionally, its rigid management system led to a habitual pursuit of stability and price maintenance. Of course, the latter is a common problem among international automotive giants.

Since last year, the iteration speed of China's automotive industry has doubled, accelerating into an era where the fast fish eats the slow fish. Nissan can no longer sit idle. Sekiguchi said, 'Our transformation has indeed been slow, but it will be faster in the future.'

In March this year, Nissan announced its four-year 'The Arc Nissan' plan, aiming to renew 73% of Nissan-brand products in China and launch eight new energy vehicle (NEV) models, including four Nissan-brand models. By the 2026 fiscal year, annual sales are expected to increase by 200,000 units to reach 1 million units; vehicle exports will commence in 2025, with an initial export target of 100,000 units in the first phase; and production capacity will be continuously optimized in collaboration with local partners.

At the Beijing Auto Show a month later, Nissan unveiled four new energy concept cars: the pure electric Epoch and Epic, and the plug-in hybrids Era and Evo. These vehicles integrate the latest electric and intelligent technologies and are expected to enter mass production by 2026. Additionally, Nissan launched a new brand, 'Enjoy by NI,' to continue deepening its presence in the Chinese market with a customized market strategy.

If we trace the origins of Nissan's electrification, we find that as early as 2010, it launched the world's first mass-produced pure electric vehicle model—the LEAF. However, at that time, new energy was not yet mainstream, and Nissan did not deepen its layout.

It was not until 2021 that Nissan's e-POWER entered the Chinese market, debuting on the 14th-generation Sylphy. Currently, the X-Trail e-POWER model (i.e., the super hybrid electric X-Trail) has been launched. As of the end of October this year, sales of e-POWER models in China have exceeded 60,000 units.

In January 2021, Nissan announced its goal of achieving carbon neutrality in the company's operations and product lifecycles by 2050. To this end, by the early 2030s, Nissan aims to electrify 100% of new models in its core markets.

In 2022, Dongfeng Nissan launched the global strategic pure electric vehicle model ARIYA, utilizing Zero Emission technology.

While accelerating electrification, Nissan China is also laying out its strategy for smart mobility. In 2022, Nissan Mobility Services Co., Ltd. was established to specialize in autonomous taxis. It has completed two phases of demonstration operations in Suzhou, Jiangsu Province, upgrading from the LEAF to the Ariya model. As of October 22 this year, the total autonomous driving mileage of the fleet was 1.4 million kilometers.

At this year's CIIE, relevant Nissan China executives told Bangning Studio that this Robotaxi is a collaboration with WeRide, but all the in-cabin interactive software is independently developed by Nissan.

Nissan also announced that it would collaborate with Tsinghua University in the Lingang New Area of Shanghai this year to commence field operation tests on vehicle-to-everything (V2X) energy management next year, specifically covering virtual power plant responses, business model explorations, and related tests. Based on this collaboration, Nissan has the opportunity to apply the experience accumulated during the testing process to future new energy vehicle research and development, hoping to improve related technologies for energy reuse.

'This year, we launched the 'Nissan Green Plan 2030 (NGP 2030),' with key sustainable development goals including reducing carbon dioxide emissions per vehicle by 30% throughout its lifecycle and reducing carbon dioxide emissions per vehicle during manufacturing by 52%,' said Sekiguchi.

In the supply chain, Nissan can reduce carbon dioxide emissions by over 12,000 tons annually in China. On the interactive wall of the exhibition stand, Nissan (China) Parts Export Department showcased innovative approaches to green supply chains: using recyclable packaging globally, promoting electrification facilities, shifting to low-carbon transportation methods (railway and inland waterway transportation), and utilizing logistics chain visualization systems.

At this year's CIIE, Nissan also announced its membership in the China ESG Alliance. It is the first automotive company to join this organization.

Betting on the Chinese Market

Concurrent with its intensified electrification efforts in China, Nissan is experiencing a global decline in performance, with layoffs and cost reductions on the agenda.

On November 7, Nissan Motor Co. announced its financial results for the second fiscal quarter (July-September 2024) of fiscal year 2025, while also announcing global layoffs of 9,000 employees, a 20% reduction in global production capacity, and the sale of a 10% stake in Mitsubishi Motors, reducing its holding from the current 34% to 24%.

The second-quarter financial report revealed a loss of 9.3 billion yen for the quarter, prompting Nissan to revise its full-year operating profit forecast downward from 500 billion yen to 150 billion yen, marking a significant decline.

Especially in the North American market, Nissan's performance has taken a sharp turn for the worse. The combined operating loss for the market from April to September this year was 4.1 billion yen, compared to a profit of 241.3 billion yen in the same period last year, accounting for over 70% of Nissan's overall operating profit.

Nissan CEO Makoto Uchida voluntarily took a 50% pay cut and stated, 'These measures do not mean that the company is shrinking. Nissan will reorganize its business to make it more streamlined and resilient, while the reorganization of management is to respond quickly and flexibly to changes in the business environment.'

In China, Nissan's sales have also been declining year after year, from approximately 1.045 million units in 2022 to 790,000 units in 2023, a year-on-year decrease of 24.1%. For the first 10 months of 2024, sales were 558,000 units, and it is expected that annual sales will continue to decline compared to the previous year.

Facing market changes, Nissan has made rational judgments and decisions. On June 21 this year, Nissan announced the closure of its Changzhou plant, reducing production capacity in China by about 10%. The plant has an annual production capacity of about 130,000 units. This is the first time Nissan has closed a passenger vehicle plant in China. Against the backdrop of the overall erosion of the Chinese gasoline vehicle market, Nissan is reducing gasoline vehicle production capacity to free up more resources for the development of new energy vehicle models.

In terms of research and development, this year, Nissan wholly acquired the former Renault-Nissan-Mitsubishi Alliance Innovation Center to establish Nissan Technology Development (Shanghai) Co., Ltd., focusing on electrification, autonomous driving, and the Internet of Vehicles. Sekiguchi stated that having a local design team in the highly competitive Chinese market can better understand the needs of local consumers.

In addition, Nissan is also involved in the construction of smart cities with local governments. Nissan Mobility, located in Suzhou, is jointly developing an intelligent route planning system based on vehicle-road-cloud integration with its partners, with the potential to expand to more cities in China in the future.

Some people interpret these continuous initiatives as Nissan's passive response, but Nissan believes it is a long-term layout in the Chinese market.

Once, Nissan dominated the Chinese 100,000-yuan car market with Dongfeng Nissan Sylphy. However, now, autonomous brands like BYD and other new energy vehicle companies are continuously lowering prices, hitting the core competitiveness of most joint venture automakers and redefining market allocation rules.

Coupled with the rise of smart electric vehicles, Chinese consumers are being guided towards new driving habits, including preferring infotainment systems and intelligent assisted driving functions, and expecting higher service quality... Relying solely on traditional advantages, Nissan cannot succeed in China anymore.

Shohei Yamasaki mentioned that China is the world's largest automobile market in terms of production and sales and is at the forefront of future mobility. This is driven by both policy push and demand pull. Chinese consumers' enthusiasm and acceptance of new technologies and products are unprecedented, stimulating the willingness to innovate in the automotive industry and expanding market space.

'The transformation of China's automotive industry will reflect greater intensity and speed. This change profoundly affects every link in the automotive industry and service chain,' he said.

Nissan has sorted out and laid the groundwork for foreseeable situations, determined to make long-term investments in China's smart electric vehicle sector.

Now, Nissan has drawn a new starting line and set new speeds and goals.