Nissan and Honda to Cut China Production as EV Race Heats Up, Sources Say

(Nikkei Asia) — Nissan Motor Co. Ltd. and Honda Motor Co. Ltd. are preparing to reduce their vehicle production capacity in China, Nikkei has learned, as the Japanese carmakers struggle to keep up in the electric vehicle (EV) race against Chinese rivals.

Nissan will begin talks with a local joint-venture company in the coming days to slice its capacity in China by up to 30%, which is equivalent to 500,000 cars annually. The Japanese company can at present make around 1.6 million cars in China every year.