Reports say Nissan plans to cut production in China by 30%, and Honda will also cut production by 20%.

According to Nikkei GO, Nissan has begun considering cutting its automobile production capacity in China by up to 30% and will negotiate with local joint ventures. Honda also plans to reduce production capacity in China by 20%.

Nissan has begun considering cutting production capacity in China by up to 500,000 vehicles. The current annual production capacity is about 1.6 million vehicles, equivalent to 30% of China's annual production capacity.

Nissan conducts business through "Dongfeng Nissan", a joint venture with Dongfeng Motor Group, and has eight vehicle factories in Hubei and Henan provinces. The joint venture partners and bases will also be reorganized.

Nissan's output in China will drop 24% year-on-year in 2023 to 793,000 vehicles, falling below the 1 million vehicle mark again in 14 years. Nissan's sales in China in 2018 were 1.56 million vehicles, once ranking first among Japanese cars, but its current operating rate is only half of its peak.

Honda also plans to reduce China's production capacity by 20% to about 1.2 million vehicles. Negotiations are currently underway with local joint venture partners.

Honda has a combined annual production capacity of 1.49 million vehicles through two joint ventures with China's large state-owned enterprises Guangzhou Automobile Group and Dongfeng Motor Group.

The above is the detailed content of Reports say Nissan plans to cut production in China by 30%, and Honda will also cut production by 20%.. For more information, please follow other related articles on the PHP Chinese website!