WASHINGTON, D.C. — Nissan Motor Co has announced an abrupt reduction in petrol‑engine vehicle output for the Chinese market as sales of battery‑electric and plug‑in hybrid models surge ahead of forecasts, prompting a revision of its 2024 sales target for China.

The automaker said it will trim production of its conventional models by roughly 15 % by the end of 2024, while expanding capacity for battery electric vehicles (BEVs) and plug‑in hybrids (PHEVs) by an estimated 25 %. Nissan attributes the shift to a “new‑energy vehicle market that is moving faster than expected,” amid a price war that has squeezed margins for all foreign manufacturers.

Industry analysts note that Nissan’s China sales slipped 12 % in the first quarter, while BEV registrations grew 38 % year‑over‑year, according to data from the China Association of Automobile Manufacturers. “The pace of consumer adoption, driven by government subsidies and expanding charging infrastructure, is forcing legacy OEMs to re‑balance their line‑ups,” said Laura Cheng, senior auto analyst at Bloomberg Intelligence.

Japanese officials warn that the rapid transition could strain supply chains, especially for lithium‑ion batteries, and may prompt revisions to trade policies. The Chinese government has pledged an additional ¥200 billion in incentives for NEV (new energy vehicle) purchases through 2025, a move that could deepen the competitive gap for manufacturers still reliant on internal‑combustion engines.

Investors are watching Nissan’s strategic pivot closely. The company’s share price fell 4.2 % after the announcement, while rival BYD saw a 2.8 % rise on the same day. Nissan’s chief operating officer, Hiroto Saikawa, told reporters, “We are aligning our production footprint with the reality of market demand, ensuring long‑term profitability and sustainability for our shareholders.”

Key Takeaways

• Nissan will cut Chinese petrol car output by about 15 % while boosting BEV and PHEV capacity by roughly 25 %.
• China’s BEV sales grew 38 % YoY in Q1 2024, outpacing the overall auto market’s 5 % growth.
• Government incentives totalling ¥200 billion aim to accelerate NEV adoption, intensifying pressure on legacy manufacturers.

As the world’s largest auto market accelerates its shift to electrified mobility, Nissan’s recalibration underscores the broader industry challenge of balancing legacy operations with emerging clean‑energy demand, a dynamic that will shape investment strategies and policy discussions in the months ahead.