The Changzhou facility of Nissan Motor Co., Ltd. has temporarily halted manufacturing. A company representative said Friday that the move is part of its strategy to streamline its Chinese operations. Along with local partner Dongfeng Motor, the Changzhou facility produced 130,000 Qashqai SUVs annually.
Nissan is dedicated to China’s enormous vehicle market despite the suspension. According to the spokeswoman, the Changzhou facility produces 8% of Nissan’s 1.6 million automobiles in China. Nissan’s Dongfeng collaboration includes eight Chinese factories.
Chinese enterprises are challenging the Japanese automobile and other Japanese manufacturers. Providing a wide selection of software-enhanced electric vehicles at pricing comparable to internal combustion engine cars has helped these local competitors gain market share.
Nissan’s longtime partner Renault stopped manufacturing at its Chinese joint venture last year, as did Mitsubishi Motors.
Nissan shutting down the Changzhou facility was reported by Nikkei. Nissan’s goal is to adapt and stay competitive in China’s automobile market.