Nissan announced a significant adjustment to its global strategy, citing faster-than-expected adoption of electric and hybrid vehicles in China as a primary driver. The Japanese manufacturer lowered its annual sales forecast to between 2.97 million and 3 million vehicles, down from the previously projected 3.15 million, with declines concentrated in the Chinese market.
The carmaker attributed its struggles to weakening demand, intensifying competitive pressure, and the rapid transition to new energy vehicles in China. Sales across the Chinese market fell 22 percent during the first half of the year, with conditions deteriorating further from July through October, resulting in a 32 percent decline in the first nine months. Chief Executive Ivan Espinosa characterized the market conditions as exceptionally challenging, noting that the shift to alternative powertrains was occurring more rapidly than the company had anticipated.
In response, Nissan plans to restructure its Chinese operations by reducing local production of petrol-powered vehicles and increasing manufacturing of battery electric vehicles and plug-in hybrids. The company is also adjusting its model lineup, scaling back the traditionally petrol-focused Sylphy family of sedans while expanding its N series of electrified models. This represents a strategic pivot to better align with Chinese consumer preferences and regulatory pressures.
The situation underscores the divergent EV adoption rates across major markets. While China accelerates its electric transition—supported by government subsidies that have created numerous domestic competitors—other regions including North America and Europe have progressed more gradually. Nissan reported improved performance in its home market and North America, regions where policy changes, including the reduction of battery vehicle incentives, have slowed the shift away from conventional powertrains.
Simultaneously, Nissan has faced complications in Europe, where it operates a factory in Sunderland, England. The company has lobbied against stricter zero-emission vehicle mandates while simultaneously contending with proposed EU rules that could exclude its vehicles from subsidies and incentives, adding further pressure to its European operations.
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