China to Replace U.S. as Nissan’s Biggest Market
China has become a much better prospective market than the US for many automakers, including Nissan. In 2017, many automakers saw declining sales in the US. During this period, Nissan sales increased by 1.9% (compared to 2016) in the US, and more than 12% in China.
In 2010, Nissan planned to corner 10% market share in the US. The company achieved its target but suffered eroded profit margins due to hefty discounts coupled with increased capex for new model launches. The company now has plans to improve its profitability in the US and increase sales in China to drive overall revenues.
To grow in China, Nissan plans to focus on the budget segment – which accounts for the majority of passenger car sales in the country. It will also focus on electric vehicles – which is still a nascent market in China with significant growth opportunities. The conventional vehicle market is fairly consolidated, having clear leaders in the form of General Motors and Volkswagen so presents a more challenging prospect for growth.- Aman Madhok
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Aug 24, 2018
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