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Nissan Betting On China Sales

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Venucia T70

Venucia T70

The sales results out of China recently have been mixed, with brands like VW seeing large gains and brands like General Motors seeing a steep decline. What exactly is going on? According to the team at the Business Insider, the Chinese market is still buying cars, but instead of looking for the luxury one would find in something like a Buick vehicle, drivers are shopping for something much simpler.

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Nissan heard that China was looking for cars with no frills, and it is confident that its lineup in the superpower will satisfy consumers. Nissan’s budget brand in cooperation with China’s Dongfeng Motor Co, called Venucia, was introduced in 2010, and the cars that it offers are very budget-conscious while still having the features that drivers deem to be the most important.

Until recently, foreign automakers commanded the largest segment of the Chinese auto market, about 65%. Starting in 2014, that number began to shrink. While they still maintained 56% of the market in the first quarter of 2016, the slide is forcing Venucia and Nissan to take another look at the automaker’s lineup to ensure that it is completely optimized for Chinese customers.

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The Japanese automaker has admitted that it was unprepared for the explosion of sales in China, so its own production limitations will restrain sales growth to a maximum of five percent this year. Overall, the China Association of Automobile Manufacturers (CAAM) estimates that the budget vehicle sector will grow by six percent, which means that Nissan could be missing out on a significant chunk of sales. We shall see if Nissan’s focus shift to Venucia will help it survive the changing Chinese market.

News Source: Business Insider