AutoBeta(AutoBeta.net)10/27 Report--

According to foreign media reports, Nissan announced that it will increase its production capacity in China by 30% in 2021, in order to achieve a turnaround while taking advantage of the recovery of demand in China's largest auto market. According to reports, Nissan and its joint venture partner Dongfeng Motor set up production lines at factories in Wuhan, Hubei Province and Changzhou, Jiangsu Province, expanding its production base in China from the current 4 to 6. Nissan's annual production capacity in China will also increase from 1.4 million to 1.8 million, exceeding the production capacity of Toyota and Honda in China.

Nissan did not comment on the reported plan, but said in an email that overall progress of the project was on track despite the impact of the COVID-19 epidemic.

Nissan's performance in the global market is worrying and seems to be in a state of endless losses. After a huge loss of 671.2 billion yen (44.7 billion yuan) in fiscal year 2019, Nissan lost another 285.5 billion yen (19 billion yuan) in the first quarter of 2020, the first time Nissan lost money in the first quarter of the fiscal year in nearly 11 years.

Nissan CEO Uchida said at the time, "the market outlook is still uncertain, the second impact of the epidemic may lead to further deterioration of demand." Fiscal year 2020 will be a challenging year for profitability and cash flow. "

Although Nissan's performance in the global market is not optimistic, the sustained recovery in the domestic market is seen as an important part of the turnround. In the first half of this year, Nissan's global sales fell by 31.2% to 1.8074 million vehicles, of which Nissan sold 596300 vehicles in China, down 17% from a year earlier, but firmly ranked first in the single market.

Nissan said that the Chinese market, the main sales market, has recovered rapidly after the COVID-19 epidemic spread, and Nissan hopes to seize the strong demand in the Chinese market to improve its performance.

In addition, Nissan will also launch an electric offensive in the Chinese market. Nissan plans to continuously improve the layout of new models in China over the next five years, including the launch of electric cars, to help Nissan return to profitability, Nissan CEO said on Sept. 26.

According to the plan, Nissan will launch nine new or redesigned electric vehicles in China by 2025, including the newly unveiled Ariya and the new positioning sedan pure electric SUV.

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