A Goldman Sachs research report on electric vehicles says the EV uptake is at a turning point, and hybrids and plug-in hybrids are giving a tough competition.
Nissan may lower annual production in the world's biggest auto market by as much as 30%, or about 500,000 cars, while Honda is looking at a 20% cut to around 1.2 million vehicles, Nikkei said.
The performance of the Sakura - meaning "cherry blossom", Japan's national flower - is a bright spot for Nissan whose EV efforts have been eclipsed by the likes of U.S. rival Tesla and Chinese leader BYD which, in China, have pushed the Japanese automaker out of the top 10 brands.
Renault Group and Nissan now have a cross-shareholding of 15% with lock-up and standstill obligations.
While Chinese firms have been improving their competitiveness, some foreign companies are opting to leave China. Earlier in October, Mitsubishi Motors announced that it would withdraw from production in China, according to Nikkei Asia report.
Chinese rival BYD, which makes EVs and hybrid models from its Dynasty and Ocean series, delivered 301,095 passenger vehicles in October, up 5% from September and a 38.4% increase from the same month last year.
Japan's Mitsubishi Motors will end production in China, the company said Tuesday, after failing to keep pace with the local market's rapid shift to electric vehicles. "Local production of Mitsubishi brand vehicles in China will be terminated," the company said in a statement released Tuesday.
Like other Japanese automakers, Mitsubishi has struggled in China, the world's biggest car market, where it has faced fierce competition from local rivals that have aggressively won market share with battery-powered vehicles.
Thailand aims to convert about 30% of its annual production of 2.5 million vehicles into EVs by 2030 and is preparing incentives to encourage more investment and conversion into EV manufacturing.
Economists warn that China's auto sector could even become a drag on economic growth because of the fallout from the price war, which would be a stark turnaround for a car industry that is by far the world's biggest.
Indonesia has ambitious EV growth plans as it races Thailand and India to build out an EV industry as an alternative to China, the world's largest producer. However, EVs currently account for less than 1% of cars on its roads.
Indonesia's Ministry of Industry had earlier said it would reduce import duties from 50% to zero for automakers planning EV investments. That was seen as aimed at attracting Chinese EV makers and potentially Tesla, a company the government has long courted.
Mitsubishi has already taken a big hit in China, where its joint venture with Guangzhou Automobile Group (GAC) has cut staff after production of Mitsubishi's new Outlander sports utility vehicle was halted months after its launch in December.
Jean-Dominique Senard, Chairman of The Alliance, said, “The agreements that have been signed on Wednesday allow us to step into the next chapter of the Alliance. They strengthen our long-standing partnership and will maximize value creation for each Alliance member. This also lays the foundations for a new, balanced, fair, and effective governance.”
Mazda Motor's CEO acknowledges the need for strategy overhaul in China due to fierce competition from domestic players and the growing electric vehicle market. Despite tough conditions and pressure on profits, Mazda plans to introduce EVs and reduce fixed costs to stay competitive.
Nissan Motor plans to invest around 100 billion yen (USD 725 million) in Renault's new electric vehicle unit, Ampere, in an effort to reshape their alliance. Nissan and Renault anticipate Ampere's enterprise value to range between 8 to 10 billion euros.
The announcement follows mounting pressure on the joint venture that makes Mitsubishi's Outlander model. Mitsubishi said in April it would take a USD 78-million charge for slowing sales at the venture. SUVs represent the largest share of the growing electric vehicle (EV) market in China, where price cuts and the rollout of new models have taken sales away from combustion vehicles.
Under the memorandum of understanding (MOU), the businesses of Daimler-owned Mitsubishi Fuso Truck and Bus Corp and Toyota subsidiary Hino Motors Ltd would be combined under a holding company, they said in a statement.
The Japanese company said last month it had halted production of its Outlander sport utility vehicle (SUV) in China for three months until end-May and would take a USD 78 million charge for slowing sales at its joint venture with state-owned GAC Group.
The market, crowded with more than 90 models, is about to get even tighter with at least 20 new models of both Chinese and foreign brands launched in April, squeezing pricing and margins at home and driving exports, analysts and executives said.
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