Nissan reduces petrol car production as EV sales boom in China

The strategic shift to electrified models is driving sustained revenue pressure on ICE vehicles in China, while BEV/PHEV margins are set to expand, albeit at a slower pace than initially projected. Main risk: if the market fails to absorb the new BEV/PHEV production mix or if regulatory lobbying successfully weakens EU mandates, the margin upside will be severely curtailed.

Nissan is undergoing a strategic shift in production mix driven by a demand spike for electric and hybrid vehicles in China. This results in volume contraction for petrol vehicles and pressure on ICE vehicle margins, while the company simultaneously lobbies against regulatory mandates in Europe.