[YesAuto News] Taking Nissan Motor Company’s export of CEDRIC cars to China as the iconic starting point, it is one of the first foreign auto brands to enter the Chinese market. It has experienced the establishment of joint ventures in China, export of parts and components, and import A series of key initiatives such as luxury brands. In 2017, Nissan ranked fifth among joint venture brands with 1.52 million sales in China.
However, Nissan is not satisfied with this. In February of this year, Nissan and Dongfeng Motor Co., Ltd., a joint venture in China, jointly released the “TRIPLE ONE” mid-term business plan. It clearly stated that it plans to increase sales in the Chinese market from last year's 1.5 million vehicles by 2022. Increased to 2.6 million vehicles; sales revenue increased by 60% to 300 billion yuan; intends to become the top three favorite car brands of Chinese consumers.
To achieve these three goals, Nissan has formulated three implementation strategies. On November 4, Nissan (China) Investment Co., Ltd. Managing Director Xi Linlong gave a public explanation during an exclusive interview with the media such as Autohome.
1. Increase the launch of new energy vehicles in China
In order to achieve the goal of increasing sales by 1 million, Xilinlong said bluntly that the Chinese market should be given priority in product planning. According to the plan, Nissan will launch more than 40 new cars in the next five years, including 20 electrified models (including pure electric models and e-POWER models). And by focusing on electric vehicles and the local brand Venucia established in China to achieve this goal, it is expected to achieve 100% localization of key components for electrification within three years.
On November 5, one of the exhibitors will participate in the first China International Import Expo. During the exhibition, Nissan Motor displayed two products under the “Nissan Intelligent Mobility” brand new Nissan Leaf and Nissan Note e-POWER.
In order to further realize the development in the field of green energy saving and environmental protection, Dongfeng Limited (DFL) announced in August this year that it will accelerate the deployment of the “Green 2022 Plan”, with the intention of achieving a 20% reduction in output value and energy consumption, further reducing carbon dioxide emissions and achieving a 50% reduction in VOC emissions. %, the goal of reducing output water consumption by 35%.
2. Develop corresponding export plans
Since 2006, Nissan has officially started its parts export business in China. Up to now, Nissan's parts export destinations in China have reached more than 20 countries and regions around the world, and the export volume has increased by 45 times. At the same time, Nissan has partnered with 450 parts suppliers in China, of which 55 are local parts suppliers in China.
In addition to the parts business, Xilinlong also said that Nissan will also consider exporting the entire vehicle when it meets consumer demand. “As a joint venture partner of Nissan, Dongfeng Motor has formulated corresponding export plans.”
3. Increase the amount of investment in China
Since February 2004, Nissan (China) Investment Co., Ltd. (NCIC) was formally established with an investment of up to 120 billion yen, which was the largest foreign investment project in Japan at that time. Furthermore, in the new round of competition, Nissan will further increase the scale of investment in China. Xilinlong introduced that in order to achieve the goals and strategies of Dongfeng's new medium-term business plan, Nissan will invest 60 billion yuan (approximately 1 trillion yen), which will be mainly used in product development, production, environmental protection, personnel training, and assistance in the 2022 plan. Implementation and other aspects.
In 2017, Nissan's sales in China achieved substantial growth. Xilinlong analyzed that this was mainly due to the increase in sales of Sylphy and Qijun models. In addition, the deepening of communication and cooperation with distributors is also the main reason for boosting sales growth.
This year's auto market has shown a slowdown in growth, leading to a small increase in Nissan's sales. Data show that in September this year, Nissan sold 141,195 vehicles, a decrease of 0.8% year-on-year. In the first nine months, sales were 1,095,578 vehicles, an increase of 7.4% from the same period last year. “Although our sales in September fell slightly, they were still in line with the industry TIV (Total Annual Sales Value). We maintained our competitive advantage in the market. At the same time, Nissan's passenger car and light commercial vehicle business segments Still maintaining strong growth.” Xilinlong said.
Facing the current development environment of the auto market, Xilinlong believes that even if the development of the Chinese market slows down in the short-term, the market still has potential in the medium and long-term perspective. For Nissan, it still maintains double-digit growth. Based on this, Xilinlong said that it will still maintain the established strategy and policy. That is, they are still focusing on promoting the implementation of the “TRIPLE ONE” mid-term business plan and the EV strategy. It will also deploy intelligent interconnection technology on the core models of Nissan and Venus, while advancing the development of intelligent driving technology.