Nissan, the Japanese car manufacturer, announced on Friday (June 21) that it has ceased production at its factory in Changzhou, China, in order to optimize its operations.
According to Reuters, a spokesperson for Nissan stated that the factory, operated in partnership with Dongfeng Motor Corporation, has halted production. The plant primarily manufactured the X-Trail SUV, with an annual output of around 130,000 vehicles.
Prior to this announcement, the Nikkei newspaper had reported on Nissan’s plans to shut down the Changzhou facility.
The spokesperson mentioned that Nissan’s total production in China is 1.6 million vehicles, with the Changzhou plant accounting for 8% of its output. He emphasized that Nissan remains committed to developing the Chinese market.
Nissan operates eight factories in China through joint ventures with Dongfeng Motor Corporation. However, like other Japanese car manufacturers, Nissan has been losing market share to rapidly growing domestic competitors in China. These competitors have introduced a range of software-equipped electric vehicles priced similarly to traditional internal combustion engine cars, attracting many consumers.
Last year, Mitsubishi Motors, a smaller rival, decided to cease production at its joint venture in China. Mitsubishi is a long-time partner of Nissan and French car manufacturer Renault.