Nissan Motor Co plans to cut vehicle production in China by 30,000 units in the coming months, a person briefed on the matter told Reuters news agency, as global automakers grapple with falling demand in the world’s biggest car market.
After Ford Motor Co and Hyundai Motor Co, Nissan becomes the latest automaker to cut production in the country, where slowing economic growth and a crippling trade war with the United States have pummelled vehicle sales in the past few months.
Nissan plans to cut production in China by a total of 30,000 units during the December-February period from its initial output plans, said the person who declined to be identified as the plans are not public.
Automakers set initial plans on how many vehicles to produce at each of their plants. These plans can be modified due to demand, supply chain issues, and other factors. It was not known how much Nissan had planned to produce in the three months.
The automaker produced nearly 400,000 units in the country during the three-month period ended February this year. The period covers the first two months of the year, when sales usually slow in the run-up to the Lunar New Year holidays.
China is Nissan’s second-largest market, accounting for roughly one-quarter of its annual global vehicle sales. It sold 1.5 million vehicles in China last year, and earlier this year said it planned to boost sales to 2.6 million units by 2022, making China its biggest market in terms of vehicle sales.
