Nissan to Halt Production at Wuhan Plant Amid Falling Demand in China

Nissan Motor (OTC:NSANY) plans to cease vehicle production at its Wuhan plant in China by the end of its current business year, which concludes on March 31, 2026, according to a report from Yomiuri newspaper citing unidentified sources. The move follows a sharp decline in production efficiency, with the plant operating at less than 10% of its 300,000-vehicle annual capacity. The Wuhan facility, leased from Dongfeng Motor since 2022, manufactures models including the Ariya electric vehicle and the X-Trail SUV.

The competitive pressure from rapidly growing Chinese automakers has significantly impacted Nissan’s performance in the region. Nissan declined to comment on the reported shutdown. Meanwhile, the Japanese automaker forecast a record net loss of 700 billion to 750 billion yen ($4.87 billion to $5.22 billion) for the fiscal year ended March 2025, largely due to massive impairment charges.

The struggling Wuhan plant reflects the broader challenges facing foreign automakers in China’s intensely competitive auto market, particularly in the EV sector where domestic brands are gaining dominance. Nissan’s strategic retreat underscores the shifting dynamics as global carmakers recalibrate operations to adapt to China's evolving automotive landscape.