Will Nissan Pull the Plug on Wuhan? Not So Fast.
By Team Dailyrevs April 30, 2025
Nissan’s local partner denies factory shutdown despite low output.
The Wuhan plant is running at a mere 3.5% of its capacity.
The new N7 EV sedan is Nissan's fresh play in the Chinese EV arena.
Setting the Scene: Confusion in Wuhan
It started with a whisper that quickly became a headline—Nissan might be shutting down its Wuhan factory. Given the plant’s output was crawling at just 3.5% capacity, the speculation seemed plausible. In a market as cutthroat as China’s, such numbers usually spell one thing: trouble.
Then came the curveball. Dongfeng Nissan, the company’s Chinese joint venture, issued a straight denial. No, they’re not shutting the place down. The timing and tone of the response suggest a clear attempt to contain the noise and settle nerves.
A Plant Running on Fumes
If 3.5% sounds low, that’s because it is. That level of activity barely qualifies as operational. For a factory built to churn out thousands of vehicles, it’s a stark reminder of how quickly fortunes can shift.
Still, Dongfeng Nissan says the factory stays. For now. It’s likely an attempt to protect jobs, manage supplier expectations, and avoid headlines that could trigger wider panic. But the numbers don’t lie, and the margin for error is razor-thin.
Why China Is a Brutal Arena for Nissan
Zoom out, and you’ll see this isn’t just about one factory. Nissan’s entire position in China is under pressure. While it was once a dependable player in the region, the rise of local EV makers like BYD, Xpeng, and Nio has changed the rules. These companies move fast, price aggressively, and—most importantly—know what Chinese buyers want.
Nissan, like other legacy brands, has struggled to keep pace. Add in a projected ¥750 billion global loss, and it becomes easier to understand why whispers of a shutdown gained traction.
Enter the N7: Not Just Another EV
Amid the uncertainty, Nissan rolled out its answer: the N7 EV sedan. With a price tag around $16,450 and a claimed 625 km range, it’s aimed directly at the sweet spot of China’s EV market.
Design-wise, the N7 plays it safe but smart. It’s aerodynamic without being flashy, and the cabin is clearly built for digital natives—with a Snapdragon 8295P chip under the hood and AI voice controls onboard. It's a decent package, though whether it moves the needle remains to be seen.
What This All Really Means
So, is the Wuhan factory safe? Technically, yes. But long-term? That’s another story. Denials are easy. Reversing a years-long slide in relevance is not.
The real issue here is broader: how does a global giant like Nissan stay competitive in a market that’s evolving faster than it can adapt? Wuhan might just be one battle in a much bigger war.
For now, the lights are still on. But no one’s pretending this is business as usual. Not even Nissan.
Source: Yicaiglobal