Nissan Motor (7201.T) and Mazda Motor (7261.T) made significant announcements on Thursday, unveiling new vehicles tailored specifically for Chinese drivers at the Beijing auto show.
This move signals a renewed effort by Japanese automakers to regain traction in the world’s largest auto market, responding to the evolving preferences of Chinese consumers, particularly for software-loaded, electric-powered vehicles.
Japanese automakers like Nissan have faced challenges in China, losing market share to agile local manufacturers such as BYD (002594.SZ), who have adeptly targeted the tastes of younger drivers. In response, Nissan introduced two battery electric vehicle (EV) concept cars and two plug-in petrol-electric hybrids, developed in collaboration with local partner Dongfeng, showcasing the company’s commitment to the Chinese market.
Nissan CEO Makoto Uchida emphasized the significance of these new models in aligning with Chinese consumer preferences.
Similarly, Mazda unveiled the EZ-6 sedan, available in both all-battery EV and plug-in hybrid variants. CEO Masahiro Moro announced plans to introduce the Arata SUV in 2025, also featuring two powertrain options.
The EZ-6 sedan’s EV version boasts a driving range of approximately 600 kilometers (373 miles), while the plug-in hybrid version offers a range of about 1,000 km. This indicates Mazda’s commitment to delivering competitive range capabilities.
Both Nissan and Mazda are striving to adapt to the evolving landscape of the Chinese automotive market.
Japanese automakers have recognized the need to adapt their strategies in China, where market dynamics have shifted. Nissan, for instance, experienced a 16% decline in China sales last year, further compounded by challenges stemming from intensified U.S. competition and disruptions to shipping routes. This prompted a downward revision of its annual operating profit estimate by 14.5%.
To enhance their competitiveness in the electric vehicle segment, Nissan and Honda announced last month that they are exploring a partnership to collaborate on key components for EVs and other areas of mutual interest.
Meanwhile, Mazda has faced a steeper decline in market share, with sales plummeting by 72% from its peak in 2017.
Despite these challenges, both Nissan and Mazda remain optimistic about their prospects in China. Nissan plans to export cars from China starting in 2025, initially targeting an annual volume of 100,000 to 200,000 vehicles, reflecting their commitment to the market and their determination to navigate through the current challenges.
