Nissan feels the heat from BYD’s EV price war in China

Nissan is feeling the heat from BYD's aggressive electric vehicle price war in China.

Once a top-five automaker in the region, Nissan's sales have plummeted,

falling 16% last year and another 2.8% last month,

with 64,233 vehicles sold.

BYD, China's largest automaker, has launched a "liberation battle" against internal combustion engine vehicles.

By drastically cutting prices and introducing affordable electric models like the Seagull EV, starting under $10,000,

BYD aims to dominate the market.

As a result, Nissan is shutting down its plant in Changzhou,

which accounts for about 8% of its production capacity in China.

The factory, which can produce 130,000 units annually,

is closing its doors this Friday.

Nissan's joint venture with Dongfeng Motor includes eight plants in China,

with a total annual capacity of 1.6 million units.

However, Nissan's projected sales for fiscal 2024 are only 800,000 vehicles,

highlighting the overcapacity issue.

isn't alone; Japanese rivals like Toyota, Mitsubishi, and Honda are also retreating from China.

Meanwhile, BYD is expanding globally, eyeing a major plant in Mexico

and capturing over 20% of Japan's EV imports in January.