Faster-than-expected EV sales boom in China prompts Nissan to reduce petrol production

China shifts toward new energy

Nissan said it had been caught off guard by the faster growth of electric and hybrid vehicles in China, the world’s largest automotive market. The company also described a harsh market shaped by a severe price war.

China’s government provided substantial subsidies to its electric-car industry. The article says this was intended to help the country move ahead of Germany, Japan and the US, which had led sales of internal-combustion engine cars.

Sales outlook cut

Nissan now expects to sell 2.97m to 3m cars this year, lowering its earlier forecast of 3.15m. It said the revision was mainly due to difficulties in China.

Sales increased in Japan and North America, where the shift to electric cars has been slower. The article links that pace in part to policy choices, including Donald Trump ending incentives for battery-car makers.

Changing its China lineup

Nissan’s China range is led by the Sylphy family of saloon cars, which Espinosa said was too closely associated with petrol engines. The company is reducing production locally and exporting some products.

Nissan is also seeking to expand its N series, made up of electric and plug-in hybrid models. The article does not provide figures for the planned production cuts or expansion.

European rules add pressure

As drafted, the rules would leave all Nissan cars outside EU subsidies and other incentives, increasing pressure on the manufacturer. The article also notes rising UK demand for electric cars, particularly after the Iran war pushed up petrol and diesel prices; recent data showed used EV sales growing much faster than petrol-car sales.