Nissan Motor has unveiled plans to sell electric vehicles (EVs) developed in China on a global scale, marking a strategic move to tap into the country’s research capabilities and expedite progress in electrification. The Japanese automaker is exploring the possibility of exporting its existing range of internal combustion engine vehicles, as well as forthcoming electric and plug-in hybrid models produced and developed in China, to international markets, revealing aspirations to compete with Chinese counterparts like BYD.
Capitalizing on lower manufacturing costs
In a bid to capitalize on China’s lower manufacturing costs, Nissan aims to join the ranks of foreign automakers, including Tesla, BMW, and Ford, expanding their exports of vehicles manufactured in China. This move is expected to enhance factory capacity utilization while taking advantage of cost efficiencies in the production process. With China constituting just over 20% of Nissan’s global sales in the first 10 months of the year, down from over a third in the same period last year, the company is strategically aligning itself with the global trend of leveraging China’s manufacturing capabilities.
Facing challenges in China’s competitive auto market
Japanese automakers, including Nissan, have confronted significant sales challenges in the fiercely competitive Chinese auto market, which ranks as the world’s largest. Increased popularity of domestic brands, coupled with intense price competition amid the rapid shift towards electric vehicles, has posed a hurdle for Japanese companies. In response to these challenges, Nissan is eyeing China’s EV market as an avenue for growth and resilience.
Collaboration with Tsinghua University for enhanced research
To bolster its presence in the Chinese market and fortify its research and development efforts, Nissan has announced a partnership with Tsinghua University. The joint research centre, scheduled to launch next year, will focus on advancing EV technologies, encompassing areas such as charging infrastructure and battery recycling. By deepening collaboration with Tsinghua University, Nissan aims to gain a comprehensive understanding of the Chinese market and develop targeted strategies to meet evolving customer needs.
Extending a successful research partnership
The upcoming research centre builds upon Nissan’s successful research collaboration with Tsinghua University since 2016. The initial partnership concentrated on intelligent mobility and autonomous driving technology, and the extension signifies Nissan’s commitment to advancing research efforts in line with China’s growing prominence in the electric vehicle landscape.
Nissan’s President and Chief Executive, Makoto Uchida, expressed optimism about the collaboration, stating, “We hope that this collaboration will help us gain a deeper understanding of the Chinese market and develop strategies that better meet the needs of customers in China.” As the global automotive landscape evolves towards electrification, Nissan’s strategic moves in China position the company to navigate challenges and capitalise on emerging opportunities in the electric vehicle sector