Author: Weiwen
Source: GPLP
Has Nissan disaster already come in Chinese market?
Recently, Nissan has reported the global sales in February, the Chinese market sales only 15,111 vehicles, down 80.3% year on year, popular models Sentra, X-trail and Xiao Ke demand continued to decline.
By division, sales of Dongfeng Nissan and Dongfeng Qicheng, Nissan’s joint ventures in China, they were 12,704 units in February, down 80.9% from a year earlier. Sales of light commercial vehicles fell 75.4% to 2,277 units in February from a year earlier.
Responding to such bad Numbers, Yamazaki Zhuangping, senior vice President and chairman of Nissan’s China management committee, said: “our sales were predictably affected by the outbreak. But Nissan is confident in the sustainable development of the Chinese auto market and Dongfeng motor co.
Nissan was just one of the injured in a public health incident that has hit the Chinese auto market.
Toyota motor corp. and Honda motor co., Japan’s top three, also posted weak sales in China in February, selling 23,800 and 11,200 vehicles, respectively, down 70.2% and 85.12% from a year earlier, according to GPLP.
But it’s important to note that Nissan wasn’t the worst of the three.
According to foreign media reports, Nissan motor co. ‘s profit in the fiscal year 2020-2021 will be cut by 35% due to the impact of public health incidents and the sales decline in China. It will also put its alliance with Renault under more serious financial pressure.
That followed Nissan’s results for the first three quarters of 2019, which showed net income falling 12.5% to 7,5073bn yen. Operating profit was 54.3 billion yen, down 82.7% year on year. Net income was 39.3bn yen, down 87.6% from a year earlier.
Moreover, Dongfeng motor co., Nissan’s most important partner in China, is at the origin of the public health incident. It can be expected that Nissan’s production in China will become a huge problem until the incident is fully resolved.
According to GPLP, Nissan is currently planning to streamline its product line to include 60 models under the infiniti, Nissan and Datsun brands.
At the same time, according to Nissan, Mitsubishi and Nissan and Renault, union reached a new framework agreement, specific three medium-term strategic plan will be announced in May 2020 or so at the same time, by further strengthening its business model and organizational structure, use of their respective advantages to form strategic complement each other, in order to improve the members of the company’s competitiveness and profitability.
In this way, Nissan motor in the future performance direction, is not 100% decline.
However, some industry insiders said that although Nissan has made some countermeasures, but because of the company’s recent loss problems itself, the above adjustment may not have a good effect. Also plus the loss from the public health incident, Nissan is likely to continue to make losses in the future.
