Nissan’s China sales dropped 12% in January because of coronavirus

New Nissan Z-car concept

Japanese automaker Nissan stated on Friday its sales in China dropped by 11.8% in January year-on-year, as the Lunar New Year holiday began started than usual and also because of the outbreak of coronavirus stymied economic activity.

The company, which has embarked on a turnaround strategy to deal with a decline in sales, had been counting on strong Chinese customer base.

Last year, it sold around 1.55 million cars in China, 1.1% less compared to 2018, but bucking the entire Chinese auto market that dropped by 8.2%.

Nissan sold 118,143 vehicles in the country last month. It is expected to post its October-to-December results next week.

The company also has a joint venture with the Dongfeng Group which is based in Wuhan where the coronavirus has been concentrated. Nissan said that it is thinking about resuming production in China after February 10.

Production in Hubei province of which Wuhan is the capital, will resume after February 14.

Reuters has reported Nissan intends to sell around 1.6 million cars through its China venture in 2020.

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