Nissan Motor announced the closure of its Changzhou passenger vehicle plant in Jiangsu Province, with annual capacity of approximately 130,000 units. This is Nissan's second plant closure in China since 2024. Data shows foreign brands' market share in China has dropped below 40%, with Japanese brands experiencing the steepest decline. Analysts attribute this to the rapid rise of Chinese brands and lagging electrification efforts.
Nissan Changzhou Plant Closure: 130,000 Units Exit China
Nissan Motor has officially announced the closure of its passenger vehicle plant in Changzhou, Jiangsu Province. The facility had an annual capacity of approximately 130,000 units, primarily producing Nissan SUV models. This marks Nissan's second plant closure in China since 2024, with cumulative exited capacity exceeding 250,000 units.
The closure decision was driven by persistently low capacity utilization. In Q1 2026, the plant operated at just 28% utilization, far below the industry break-even threshold of approximately 65%. Nissan's China sales have declined for five consecutive quarters, with a 18% year-over-year drop in the first four months of 2026.
Foreign Brands Under Collective Pressure
Nissan is not an isolated case. Foreign brands are experiencing systematic contraction in China:
Honda: Closed a Guangzhou plant in 2025, cutting 50,000 units of capacity
GM: Buick brand sales have declined for 8 consecutive quarters, with a 22% drop in Q1 2026
Volkswagen: While maintaining market share leadership, sales fell 9% year-over-year through April 2026
Market Share Shifts: Foreign vs Chinese Brands
Brand Category | 2024 Share | Q1 2026 Share | Change |
|---|---|---|---|
Chinese Brands | 52% | 60% | +8pp |
Japanese Brands | 22% | 16% | -6pp |
German Brands | 18% | 15% | -3pp |
American Brands | 5% | 4% | -1pp |
Korean Brands | 3% | 2% | -1pp |
Auto industry analyst Zhao Yang notes that foreign brands face a dual squeeze. On one hand, Chinese brands like BYD, Geely, and Chery have established dominant positions in the 100,000-200,000 yuan price segment. On the other hand, foreign brands have generally lagged in electrification, with their pure electric models showing insufficient competitiveness in China.
For overseas markets like Central Asia and Russia, this shift means more high-quality Chinese capacity will be redirected outward. Through cross-border sourcing platforms like EX1000.COM, overseas buyers can access models originally destined for the Chinese market at increasingly competitive prices.
