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Nissan’s China Strategy To Focus On Fuel-Sipping Tech And Electric Cars


04/18/2021


Nissan’s China Strategy To Focus On Fuel-Sipping Tech And Electric Cars
The Japanese auto company that is under financial strain, Nissan Motor Co, will be showcasing a new "must-succeed" car while also detailing its strategy for electric cars in the Chinese market at the Shanghai auto show slated to begin on Monday, said reports quoting company officials.
 
The significantly redesigned X-Trail sport-utility vehicle (SUV) is the vehicle that Nissan plans to show off at the motor show. The company had last year launched a similar model called the Rogue in the United States. The Japanese auto company wants to make this latest SUV model – called X-Trail, available in the Chinese market starting later this year.
 
A fuel-sipping three-cylinder, petrol-powered turbo engine powers the new car but analysts feel that this model could find it hard to gain wide3 acceptance in the Chinese market where consumers have previously not liked similar cars with similar technologies.
 
According to one company official quoted in the reports, this new car is a "must succeed, a must win car for us".
 
It is also expected that Nissan’s electric green car strategy for the Chinese market is to be detailed to reports in Shanghai by Nissan's chief operating officer Ashwani Gupta from Japan. The company sources as quoted in the reports said that Nissan’s two-pronged green car strategy will include its focus on fuel efficiency-enhancing petrol-electric hybrid technologies as well as battery powered electric cars. Nissan plans to offer models of both these variants to consumers in China  
 
The Japanese company plans to electrify all its cars in its key markets, including China, by the early 2030s Nissan had said kin January. This green strategy of the company is a part of its broader target of achieving zero carbon emissions by 2050.
 
This strategy is also potentially aimed to address the growing pressure in China on car makers to cut down on emissions.
 
Doing well in the Chinese is crucial for the turnaround efforts of Nissan. Under this strategy the company plans to focus on producing profitable cars for China, Japan and the United States, and not go for all-out global growth as was set for the company under the chairmanship of the former boss Carlos Ghosn.
 
The company is currently in the process of cutting down on its production capacity as well as its model line-up by about 20 per cent. The company has also targeted to cut down on fixed costs by 300 billion yen ($2.8 billion). The new target for the Japanese auto company is to achieve operating profit margin of 5 per cent and a 6 per cent sustainable global market share by the end of fiscal year 2023
 
Nissan also plans to start taking pre orders from Chinese consumers for its upcoming electric Ariya SUV before this year ends, claimed the reports quoting the company sources. Plans of launching a hybrid "e-Power" version of the Sylphy compact car by this year and an e-Power X-Trail by the next year have also been finalised by Nissan, said the sources.
 
(Source:ww.reuters.com)