Manufacturer says ‘shift to new energy vehicles is happening faster than expected’ and market is harsh
The Japanese carmaker Nissan has said it has been caught out by accelerating sales of electric and hybrid cars in China amid a brutal price war in the world’s biggest automotive market.
The manufacturer slashed its sales forecasts for China and said it would cut back on petrol car manufacturing while increasing production of battery electric vehicles and plug-in hybrids, which combine a smaller battery with a petrol engine.
Nissan said it expected to sell between 2.97m and 3m cars this year, down from a previous forecast of 3.15m, mainly because of struggles in China.
“China remains our biggest challenge,” said Ivan Espinosa, Nissan’s chief executive. “Demand is weaker, competition is intensifying, and the shift to new energy vehicles is happening faster than expected. The market is being very, very harsh.”
The company reported increased sales in its home market as well as in North America – regions in which the shift to electric cars has been much slower because of policy decisions, including Donald Trump’s tearing up of incentives for battery car makers.
That divergence between different parts of the world illustrates the challenge for global carmakers, many of whom are trying to continue selling their more profitable petrol and diesel cars for…
