Nissan to make fewer vehicles in China in months ahead as demand reduces

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Nissan Motor will produce 30,000 fewer vehicles in the upcoming months in China compared to what it had planned, a person knowledgeable about the matter informed Reuters, as global automakers grapple with decreasing demand in the world’s biggest car market.

After Ford Motor and Hyundai Motor, Nissan becomes the recent automaker to curb production in the country, where reducing economic growth and a crippling trade war with the United States have altered auto sales in the last few months.

Nissan plans to slash production in China by a total of 30,000 units during the December-February period from its initial output strategies, stated the person who refused to be identified as the plans are not public.

Automakers set initial plans on how many vehicles to manufacture at each of their plants. These plans can be changed due to demand, supply chain issues and other reasons. It was not known how much Nissan had prepared to produce in the three months.

The automaker produced almost 400,000 units in the nation during the three-month period ended February 2018. The period covers the first two months of the year, when sales generally slow in the run-up to the Lunar New Year holidays.

Japan’s Nikkei business daily noted on Thursday that Nissan plans to slash production at three plants in China.

A Nissan spokeswoman in Beijing refused to comment on future production strategies.

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