Why should Nissan invest 60 billion in China for the production capacity of 300,000 vehicles?

From an annual sales of 1 million + to 2 million +, Nissan gambled on the Chinese electric vehicle market with 2 times of its operating profit in 2017, in anticipation of continuous consolidation and expansion of Nissan's market share in China.

On July 30, local time, Nissan CEO Nishikawa said in an interview with the media that as the company seeks to expand its sales in China by 1 million by 2022, Nissan may soon build in China. Another factory made a decision.

Nishikawa said to reporters: 'For the Chinese market, the first step is to increase the capacity of existing businesses. We still have some room for expansion. The second step is that we may add a new factory with a capacity of 300,000 to 500,000. Between cars. '

Corresponding to the announcement by Xichuan Guangren that it is about to decide to build a new vehicle factory in China, in February 2018, when Nissan Motors held a media communication meeting in China, it said that Nissan Motor plans to spend 1 trillion yen (61.3 billion yuan) in five years. RMB), becoming the largest global electric vehicle manufacturer in the Chinese market.

Since entering the Chinese market, the daily product brand has maintained a relatively rapid growth for a long time. According to the data, in 2017, the sales volume of Nissan's new car in China reached 1.519 million, an increase of 12.2% over the same period of the previous year, setting a new record. This is also Nissan's entry into the Chinese market. For the first time since the completion of 1.5 million annual sales target.

Nissan currently has four vehicle production bases in Guangzhou, Fuyang, Dalian and Zhengzhou, with a production capacity of 1.3 million units per year. Some industry speculations that Nissan's total investment in China may exceed RMB 40 billion.

'According to the industry average data, the current domestic investment in a factory with 600,000 capacity is about 20 billion yuan.' Industry experts told car prophets that according to the investment scale of 60 billion, Nissan can achieve a production capacity far beyond the population of Nishikawa. 300,000 vehicles. 'From all indications, Nissan’s ambitions in the Chinese market are definitely more than 300,000 units of capacity expansion,' the source believes.

According to relevant information, in fiscal 2017, Nissan Motor Co., Ltd. operating profit was 574.8 billion yen (35.2 billion yuan), net income was 11.95 trillion yen (732.5 billion yuan), operating profit margin was 4.8%. 12.6% to 746.9 billion yen (39.8 billion yuan).

From the analysis of business data, the investment amount of 60 billion electric vehicles in China is twice the operating profit of 2017 Nissan Automobile, which cannot be said to be a big investment.

'This is the largest investment in the history of Nissan in China, especially in the Nissan-Mitsubishi-Renault alliance system. 'The relevant industry sources said that the two-year profit was invested in the Chinese market, which fully proved that Nissan is for the Chinese market. The attitude also reflects the pressure of Nissan in China.

With regard to the purpose of this 60 billion investment, Nissan said it will continue to promote the electrification process of Nissan in the Chinese market in China, and build a 300-500,000 vehicle manufacturing plant.

Relevant information shows that at present, Nissan's factory in China has a production capacity of 550,000 units in addition to the Dongfeng Nissan Huadu base. Other factories have not yet broken the production scale of 300,000 units at a single base.

Nissan will invest 60 billion yuan to build an electric vehicle factory with an annual output of more than 300,000 vehicles. ' Some analysts pointed out that the continuous promotion of electrification in China is a consistent strategy of Nissan.

Previously, when Nissan held its 2018 annual communication meeting in China, it told the media that Nissan must use its electric products to consolidate its leading position in the Chinese market and strive to make Dongfeng Nissan the top three in the joint venture brand.

Today, it seems that this 60 billion is the 'stimulant' to ensure Dongfeng Nissan enters the top three of the joint venture brand.

'In the Japanese brand of the Chinese market, Nissan is the absolute responsibility of sales, but the crisis is raging,' the analysts stressed that the market environment makes Toyota and Honda break through. For example, Toyota continues to promote TNGA in China and enhance the core of North and South Toyota. Competitiveness; Honda's marketing in China continues to innovate, Honda, which is flaunted by 'black technology', is constantly moving upwards, and sales continue to rise.

According to 2017 sales statistics, SAIC Volkswagen, SAIC-GM, and FAW-Volkswagen are among the top three joint venture brands in China. Dongfeng Nissan completed sales of 1.11 million units in 2017, and FAW-Volkswagen completed sales of 1.87 million units. Dongfeng Nissan wanted To achieve the top three brands of joint ventures, it is necessary to complete the absolute sales growth of at least 700,000 units.

'Leap in the top three in the industry, this is not a problem of 700,000 sales performance, but the embodiment of the competitiveness of the entire Nissan system, 'The industry said that Nissan needs to continue to strengthen the localization process in China, it is possible to achieve Dongfeng Nissan The first three joint venture brands.

José Muñoz, Nissan's chief performance officer and chairman of the Nissan China Management Committee, said that unlike other markets, Nissan's vehicles for the Chinese market must meet two needs. First, in the local market. Designed and manufactured a model that meets 'China, China'; secondly, the relevant work is done by Chinese employees, and they are committed to training them in the early stages of their work.

In addition, sources close to Nissan revealed that Nissan will also invest in the recent addition of the Nissan Research Center. As early as 2011, the Nissan China Design Center was put into operation in Beijing. This is the third Nissan car established outside Japan. design Center.

In the future, Nissan may use nearly 10 billion yuan to support the research work of the China Research Center on the localization of electric vehicles in China, some sources said.

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