Nissan to Close Factory in Wuhan by End of FY 2025; Annual Operations Less Than 10% of Plant Capacity Due to Sluggish Sales

The Yomiuri Shimbun

15:16 JST, April 26, 2025

Nissan Motor Co. has decided to withdraw from automobile production at its Wuhan plant in China’s Hubei Province by the end of fiscal 2025, according to sources.

Though the plant in mainland China is a major manufacturing base capable of an annual production capacity of 300,000 units, its operating rate had declined to less than 10% of capacity due to sluggish sales resulting from the rise of Chinese automakers.

Nissan is forecasted to fall into its worst ever deficit and is speeding up its restructuring measures.

The Wuhan plant will close after only about three years of operation since it opened in 2022.

The plant manufactured Nissan’s strategic global cars, such as the Ariya electric vehicle and the X-Trail SUV.

But the plant’s annual output of these cars had been around 10,000 units in 2022 and 2023, the sources said.

Since 2024, the plant has manufactured EVs for Nissan’s Chinese joint venture partner, Dongfeng Motor Corp., to raise the operating rate.

Nissan’s net profit forecast for the fiscal year ending March 2025 is predicted to be a ¥750 billion deficit, the worst for the company.

Nissan’s sales volume in China was down 12% in 2024 from the previous year at a sluggish 700,000 units, which was half of sales in 2018 before the start of the COVID-19 pandemic.

Though Nissan plans to export 100,000 cars manufactured in China per year to offset the fall in sales, it is possible that high tariffs imposed by the United States and Europe may increase uncertainty about the plan.

Nissan also ceased production at another Chinese plant in Changzhou, Jiangsu Province, in June 2024. The number of Nissan’s production bases in China will be four following the planned closure of the Wuhan plant.

In February this year, Nissan announced it was reducing its production capacity in China from 1.5 million units to 1 million.

But the current capacity will still be excessive.

“We will consider the additional closure of plants,” said a senior official of Nissan.