Japanese legacy automaker Nissan plans to produce electric vehicles of its Chinese venture partner Dongfeng Motor in Wuhan by the end of 2024, Nikkei Asia reports.
Nissan to produce Dongfeng EVs
Nissan is reportedly planning to produce Dongfeng electric vehicles to fill the excess capacity in its Chinese factory.
Apart from the Nissan Ariya electric SUV, the automotive factory in central China also produces the X-Trail SUV, which is available in the Chinese market under the Dongfeng Nissan brand. The local factory has an annual production output of 260,000 units.
However, the Chinese factory has faced a substantial drop in utilization rate amid waning sales partly due to the Nissan Ariya’s relatively hefty price tag and the surge of low-cost Chinese models.
Nissan revives Wuhan factory
Nissan aims to boost the operating rate of the existing Wuhan factory by adding Dongfeng’s new Zhiyin electric vehicle to the production line.
The Voyah-branded Zhiyin EV will undergo production in China alongside the Nissan Ariya and X-Trail SUV. The move will also enable Nissan to lower fixed costs.
Dongfeng has yet to introduce the new Zhiyin as an SUV model in the third quarter of the year, promising a driving range of more than 900 kilometers.
Apart from Dongfeng’s upcoming electric SUV, Nissan also has plans to produce new EV models under its own brand at the Wuhan factory. However, it will take time to transpire.
Nissan’s foothold in China
Nissan has an annual production capacity of 1.6 million vehicles in China. However, its vehicle sales in the world’s largest auto market dropped 16% to 790,000 units last year.
Nissan has eight automotive factories through its joint venture with Dongfeng. On Friday, it closed one of these factories located in Changzhou. This facility used to account for approximately 10% of Chinese capacity.
In an effort to revive its once-strong presence in the Chinese market, Nissan announced plans to launch five new energy vehicle (NEV) models by the fiscal year 2025. These new models will play a crucial role in its target of selling 1 million units per year.
