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In China, how can Nissan recover lost sales for China?

Publish Date: 2023.04.25

  After three years, Ashwani Gupta, the Chief Operating Officer of Nissan Motors, made his debut in China. At the Shanghai Auto Show, he marveled at the tremendous changes that have occurred in the Chinese automotive industry. In the light of the rapid development of the new energy industry, Nissan's development speed has stagnated. Regarding Nissan's situation in China, he replied, "I am not sure whether we are lagging behind or leading. This is a difficult question to judge

  

  Gupta believes that defining a car with software is a turning point. "More importantly, we need to learn in the Chinese market. Over the past three years, the market has focused on software driven electric drive models, rather than just software driven electric drive models," he said.

  

  在中国,为中国,日产如何追回失去的销量?

  

  At this auto show, Nissan Motors particularly highlighted its efforts in intelligent connectivity and electric drive technology, bringing the pure electric SUV concept model designed specifically for Chinese consumers, the Nissan Arizona, and the future performance benchmark of electric vehicles, the Nissan Max Out concept model. These electric drive and intelligent connectivity technology equipped models demonstrate Nissan's speed towards electrification.

  

  In addition, the ultra hybrid electric drive Qijun, equipped with Nissan's unique e-POWER technology, also made its debut at the auto show and officially launched pre-sales in the Chinese market.

  

  The Chinese market has become a global leader in electric drive and intelligent networking services. In order to meet the increasing demand for electric drive products and sustainable development from Chinese consumers, Nissan is making every effort, "said Gupta. Against the backdrop of the current severe automotive market, Nissan still provides a strong electrification answer for the Chinese market.

  

  在中国,为中国,日产如何追回失去的销量?

  

  Software defined cars become Nissan's core strategy

  

  Gupta talked about the two concept models at this auto show in a media interview. He replied that the Max Out concept model is a representative of Nissan's future electric drive vehicles, integrating energy storage batteries, electric drive powertrain systems, and magic carpet platforms in the most compact assembly.

  

  The Nissan Arizona concept model is a low center of gravity electric vehicle that can achieve the excitement of an electric driving experience. At the same time, the graphical user interface (GUI) is fully integrated into the cabin interior, which means that the GUI can bring diverse lifestyles to users while driving. These two models ultimately showcase software driven electric drive models, which is the future development trend of the Chinese market in Nissan's strategy.

  

  在中国,为中国,日产如何追回失去的销量?

  

  Zhang Wenyu, Design Director of Nissan China Design Center, also pointed out in his in-depth interpretation of the Arizona concept model that the Nissan Arizona concept model was born in the "Cyber age". This model is based on the design and research of Nissan's future all-new electric SUV in this era context.

  

  As an electric vehicle specifically designed for Chinese consumers, Zhang Wenyu also stated that the preferences and needs of Chinese consumers are always the first factors we need to consider when designing. This car model was completely designed by young Chinese designers, emphasizing the simple handling of interior design and the romantic intelligent technology atmosphere of human-machine interface (HMI). It is a bold attempt by Nissan Design to bravely move towards the era of electrification.

  

  These two models, as the latest achievements of Nissan's electrification and intelligence process, can be seen that electric drive and software have been mentioned multiple times in product design.

  

  Two years ago, at the Shanghai Auto Show, Gupta stated that Nissan is fully prepared to invest in the forefront of future mobile transportation development, focusing on promoting innovation in intelligent networking, intelligent driving, and electric drive technology. The fierce competition and rapid intelligent development in the Chinese market have accelerated Nissan's pace of electrification.

  

  Until now, Gupta has realized that electric drive alone can no longer meet the needs of the Chinese market. With the changes in industry rules, the value brought by Software Defined Vehicle has become well-known to more consumers. Nissan hopes to collaborate with local partners in China in software to provide better services to consumers.

  

  在中国,为中国,日产如何追回失去的销量?

  

  The sales issue is an issue that Nissan cannot ignore. Official data shows that in 2022, Nissan's cumulative sales in China, including passenger cars (Nissan, Qichen, and Infiniti brands) and light commercial vehicles (Dongfeng Co., Ltd.'s January September sales and Zhengzhou Nissan), were 1.045 million units, a year-on-year decrease of 22.1%. Among them, Nissan's sales in China in December 2022 were 70500 units, a year-on-year decrease of 41.7%.

  

  For this issue, Gupta also acknowledges the declining development of joint ventures in the Chinese market: "The Chinese market is actually very interesting. In the five years before our joint venture was established, our TIV (total integrated vehicle) Compared to local Chinese automakers, TIV is much higher. It is obvious that the overall TIV is increasing, and the TIV of each joint venture is also increasing. Looking back at the 2022 data, half of the TIV data comes from local Chinese car companies, and the other half comes from joint venture car companies in China. This indicates that the overall TIV of all joint ventures has decreased, as the overall TIV has not significantly increased. This means that local automakers have already seized a significant market share from the joint venture automotive market. For Nissan Motors, this is indeed the case. For other car companies, the same trend is more or less evident

  

  Gupta believes that there is little difference between local car companies and joint venture car companies nowadays, and both need to have the same technological strength. From now on, we should talk about the entire Chinese market, rather than distinguishing between joint venture car companies and local car companies.

  

  在中国,为中国,日产如何追回失去的销量?

  

  For Nissan, The key issue now is why we should continue to develop in the Chinese market and how to do so, especially with the arrival of 50 years of development in China and 20 years of cooperation with Chinese partners. We need to fully seize this opportunity for rapid development and change, "Gupta said If we want to continue growing in the Chinese market, on the one hand, we must continue to invest in joint venture car company TIV and maintain competitiveness in traditional ICE and other segmented markets; on the other hand, we must prepare software defined vehicles for electric vehicles at a faster pace to occupy the market and compete with local Chinese car manufacturers

  

  According to Nissan's plan, by 2026, Nissan will have 7 electric drive models launched in the Chinese market, and by 2030, the proportion of electric drive models in the Chinese market will reach 80%. Gupta once again emphasized: "Our core strategy is Software Defined Vehicle, which is not only related to technology, but also involves how our software will bring unique and exclusive rich experiences to Chinese consumers

  

  Super hybrid electric drive is extremely powerful, hoping to boost sales

  

  The ultra hybrid electric drive Qijun, equipped with advanced technologies such as second-generation e-POWER technology and e-4ORCE Snow Fox electric four-wheel drive system, is a heavyweight model promoted by Nissan at this auto show, with huge advertising screens visible everywhere. The former star in the SUV market, Dongfeng Nissan's important sales pillar model, has been declining in popularity over the past two years due to issues with its three cylinder engine. I believe that the launch of the hybrid version of Qijun will definitely boost Dongfeng Nissan's sales.

  

  在中国,为中国,日产如何追回失去的销量?

  

  E-POWER technology has always been the pillar technology of Nissan's electric drive, and it is also the key to Nissan's confidence in continuously occupying the market. This technology has outstanding energy-saving advantages, and the lighter battery pack greatly reduces the vehicle's load, thereby reducing its fuel consumption performance, and can bring consumers a more pure electric driving experience.

  

  Gupta stated that driven by software, Nissan will continue to promote the development of e-POWER technology. This is an advanced technology that is particularly suitable for consumers who are concerned about vehicle quietness, acceleration performance, and energy efficiency.

  

  The second generation e-POWER technology has a more efficient engine, a higher rigidity structure, a more efficient motor, and an integrated inverter structure. The Nissan Note and Nissan Note Auray, equipped with second-generation e-POWER technology, were selected as the 2021-2022 Japanese model of the year, demonstrating the power of Nissan e-POWER technology.

  

  However, the recognition of e-POWER products in the Chinese market is not high, and Gupta still firmly believes in the technological charm and unique consumer value of e-POWER.

  

  He stated: We are not launching this technology solely to meet the qualifications of new energy vehicles, and doing so is not our strategy. Our strategy is to bring the passion and tranquility of pure electric vehicles without the need for plug-in, encouraging people to explore. This is our strategy. As for new energy vehicles, we actively promote the research and development of pure electric vehicles to meet the standards of new energy vehicles. Speaking of this, everyone knows that Nissan Automobile There is also plug-in hybrid (PHEV) technology available. We will analyze the current Chinese market and consider whether to launch PHEVs in China. Currently, e-POWER technology and pure electric technology are our two pillars. Pay attention to the trends in the Chinese market, especially new energy vehicles, and we will further study and consider the PHEV issue in the Chinese market

  

  在中国,为中国,日产如何追回失去的销量?

  

  In addition to the second-generation e-POWER hybrid system, the ultra hybrid electric drive is also equipped with a power system consisting of a 1.5T engine and dual motors. The power experience is completely consistent with that of an electric vehicle, with very fast response and particularly smooth output. The e-4ORCE "Snow Fox" four-wheel drive system, which is standard throughout the entire series, will also continue the traditional advantages of Qijun in off-road performance. Regardless, the ultra hybrid electric drive Qijun launched this time, empowered by Nissan's powerful hybrid technology, has sufficient strength to rewrite the market fate of the previous generation Qijun and boost Dongfeng Nissan's sales.

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