Nissan Turns To China

When it comes to the automotive world, it’s hard not to notice all of the manufacturers focusing on China. The US is still a major market for new car sales but China’s demand for vehicles is growing by leaps and bounds. In fact, Nissan is investing time and resources to make the country into its largest market, replacing the United States.

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Right now, Nissan is involved in a joint venture brand, Dongfeng Motor Co., with Chinese partner Dongfeng Group. The partners announced plans to grow sales in China by one million vehicles through 2022, to raise total sales in the country to 2.6 million cars annually. The list of things to do to hit that goal is fairly long and includes goals like introducing 40 new models across all four of its Chinese brands (Infiniti, Nissan, Venucia, and Dongfeng). Not only will Nissan and Dongfeng have to engineer those 40 unique models, but Nissan also wants at least 20 of them to be electrified. Beyond adding new vehicles to the market, the company also hopes to open a network of 2,000 dealerships across China.

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Considering that projections estimate a slowdown in US car sales, it might not be a bad idea for Nissan to look to China for sales growth. The country is gobbling up new vehicles and it has a much larger population that could decide to hop behind the wheel. According to Automotive News, Nissan’s joint-venture sales in China grew by 12% to 1.52 million cars last year, whereas its sales in the US grew a much smaller 1.9% to 1.60 million cars. If Nissan wants to stay king of the automotive world, this move to China might be the kick its sales numbers needs to beat the competition.

News Source: Automotive News (subscription required)