Nissan has become the latest victim of BYD’s “war of liberation” against electric vehicles. Following aggressive price cuts by BYD this year, Nissan is struggling to compete and is closing a major factory in the Chinese market.
Chinese BYD dominates the electric vehicle market! Pressuring companies like Nissan, Toyota, and Honda
For Nissan, China is a critical market in terms of global sales and net profits. Almost one-third of Nissan’s global sales and net profits come from China. In 2022, Nissan was not among the top five car manufacturers in terms of market share in China, and its situation worsened. Last year, Nissan’s sales in China fell by 16%, and this trend is expected to continue in 2024. Last month, Nissan sold 64,233 vehicles in China, with sales dropping by another 2.8%.
Nissan is closing its factory in Changzhou, which accounts for about 8% of Nissan’s production capacity in China and has an annual capacity of approximately 130,000 vehicles. The factory had to be closed because it could not sell more cars than it produced.
Discover the features and potential sales price of the new Bao 3 model, BYD's latest fully electric SUV with sleek design.
Earlier this year, BYD launched a “war of liberation” against gasoline vehicles, introducing lower-priced electric vehicle models. The cheapest model, the Seagull EV, sells for under $10,000. BYD CEO Wang Chaunfu stated that electric vehicles are entering “elimination rounds” and that the next two years are critical for car manufacturers to stand out in this race.
As Nissan’s sales decline in the Chinese market, Japanese rivals Toyota, Mitsubishi, and Honda are similarly tending to withdraw from the Chinese market. Meanwhile, BYD continues to expand its global footprint and is preparing to make a deal for a large factory in Mexico. The company plans to sell 50,000 vehicles in Mexico this year.
Additionally, BYD is expanding into the Japanese market. According to data from the Japan Automobile Importers Association, BYD accounted for more than 20% of Japan’s electric vehicle imports in January. As longer-range, lower-priced models are introduced, BYD’s momentum is expected to continue. The company is also expanding into new segments such as pickups, mid-size electric SUVs, and luxury segments.
What do you think? Is there a manufacturer that can stop Chinese brands? Share your thoughts in the comments below.
