Nissan Spends Another $1.4 Billion on China With EVs a Focus

(Bloomberg) -- Nissan Motor Co. has committed to invest an additional 10 billion yuan ($1.4 billion) in China and says it sees the nation’s intensely competitive automobile market as fertile ground to help it develop electric vehicles, an area where it needs to improve in order to get back on its feet.

“With China moving so fast, we want to stay and we want to compete,” Stephen Ma, the head of Nissan’s operations in China, said on Wednesday during a press conference at the Shanghai auto show. The investment will be made by the end of 2026.

Ma, who transferred to China in January, previously served as Nissan’s chief financial officer. He was assigned a new role during a major leadership reshuffle that was triggered by a rapid decline in the Japanese automaker’s financial stability.

Nissan unveiled two new models at the show, including a plug-in hybrid truck called the Frontier Pro. It also announced it will develop 10 new cars in China, up from eight previously, by mid-2027, and said all models will be exported, although Ma declined to specify when or where.

Due in large part to weak sales in the US and China, Nissan has been saddled with an outdated product lineup, production over-capacity issues and a mountain of debt. In November, after unveiling yet another dismal quarter, it announced plans to cut 9,000 jobs and slash output capacity by 20%. 

In the aftermath of its failed attempt to combine forces with Honda Motor Co., Nissan is back on the prowl for new business partners. Meanwhile, refreshing its lineup in pivotal foreign markets will be key, especially as US President Donald Trump’s auto tariffs reshape the landscape.

“We can successfully thrive and compete here and so China has become a very good market for us to pilot many things,” Ma said.

Nissan isn’t the only Japanese automaker looking for a fresh start in China.

Honda unveiled the GT, an electric touring model with a suite of gadgets, and announced plans to work on assisted-driving technology with China’s Momenta as well as AI-supported in-car software with DeepSeek. 

The stronger Japanese automaker will also work with Contemporary Amperex Technology Co. Ltd. to co-develop a new EV platform and plans to use lithium iron phosphate (LFP) batteries in its cars for the first time, Honda executives said at a media briefing.

Toyota Motor Corp. meanwhile, the world’s biggest automaker, rolled out two models: the bZ7, the newest addition to its electric bZ lineup, and a refreshed Lexus ES luxury sedan. Toyota also announced that its Century crossover was headed for the Chinese market.

But standing out against the wave of Chinese rivals and newly aggressive European competitors will be a challenge.

Local competition from BYD Co. as well as Geely Automobile Holdings Ltd. and its Zeekr brand have forced many legacy automakers to significantly dial back their presence in the world’s largest car market and a poor showing there is a major reason why Nissan is facing its worst financial crisis in 26 years.

Nissan is now headed by Ivan Espinosa, who took the top job in April. But his predecessor, former CEO Makoto Uchida, was seen on Wednesday roaming around the motor show, at BYD’s exhibition.

(Updates with additional Honda detail in 9th paragraph.)

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