Nissan announces the end of its production operations in Wuhan, China by 2026.

Sources informed Reuters that Nissan Motor, the Japanese company, plans to halt car production at its plant in the Chinese city of Wuhan by the end of March 2026, following a significant decline in operational rates since the facility opened in 2022.

The sources explained that the factory, with a production capacity of 300,000 vehicles annually, has only been able to produce around 10,000 units since it started operating, despite manufacturing the electric "Ariya" and the sporty "X-Trail" models.

Experts attribute this decline to fierce competition from local Chinese brands, as reported by the Japanese newspaper Yomiuri.

This decision comes as Nissan expects to record record losses of up to 750 billion yen (equivalent to 5.22 billion dollars) for the fiscal year ending in March 2024, highlighting the challenges the company faces in the Chinese market.

Nissan had launched the factory as part of its plans to expand in the electric vehicle sector, but poor performance has led to a reevaluation of its global strategy.