Posted 2/12/2024, 10:42:56 AM
Nissan Shares Plunge 12% as China Sales Slump Amid Fierce Competition from Local Rivals
- Nissan shares plunged 12% on Friday, wiping out $1.8 billion in market value, following disappointing Q3 earnings and lowered sales forecasts due to fierce competition in China
- Homegrown Chinese brands like BYD offering affordable EVs tailored to local preferences have eroded foreign automakers' market share
- Nissan is "most vulnerable" in China compared to Toyota and Honda, per analyst
- Nissan attributes sales forecast downgrade to 25% drop in China sales amid "zero-margin business" price war
- To regain share, Nissan plans to align models to Chinese preferences for tech features and leverage excess capacity for exports