Nissan's Joint Venture with Dongfeng Motor Records Tripling Sales in China

Strategic Insights -

Nissan's joint venture with major Chinese automaker Dongfeng Motor Corp. has more than tripled its sales in the first half, selling 66,476 cars compared to the same period last year. This growth is significant, although it is worth noting that the base sales figures were lower compared to other global auto makers in China. Despite this, the sales growth of Nissan's joint venture with Dongfeng Motor Corp. is noteworthy, especially in light of China's auto market beginning to recover from a nearly year-long slump in the second quarter.

Key Takeaways:

  • Nissan's joint venture with Dongfeng Motor Corp. more than tripled its sales in the first half, selling 66,476 cars compared to the same period last year.
  • The sales growth of Nissan's joint venture with Dongfeng Motor Corp. is significant, although it is up from a smaller base compared to other global auto makers in China.
  • General Motors Corp.'s flagship joint venture in China sold 135,381 cars in the first half, down about 4% compared to the same period last year.
  • Hyundai Motor Co.'s Beijing joint venture sold 109,564 cars, representing a near 95% increase in sales compared to the same period last year.
  • Nissan's joint venture with Dongfeng Motor Corp. benefited from China's auto market beginning to recover from a nearly year-long slump in the second quarter.
  • Despite the significant sales growth, profits are unlikely to be as hefty as the last two years due to increased competition from global auto makers entering the Chinese market.
  • Nissan's Zhengzhou Nissan joint venture, which builds sports utility vehicles, sold 9,744 vehicles in the first half, down 15% on year.

Statistics:

  • Nissan's joint venture with Dongfeng Motor Corp. sold 66,476 cars in the first half, more than tripling sales from the same period last year.
  • General Motors Corp.'s flagship joint venture in China sold 135,381 cars in the first half, representing a 4% decrease compared to the same period last year.
  • Hyundai Motor Co.'s Beijing joint venture sold 109,564 cars, representing a 95% increase in sales compared to the same period last year.
  • Nissan's Zhengzhou Nissan joint venture, which builds sports utility vehicles, sold 9,744 vehicles in the first half, representing a 15% decrease in sales compared to the same period last year.
  • China's auto market recovery began in the second quarter after a nearly year-long slump.

Sources:

  • Dow Jones Commodities News via Comtex (2005)
  • Nissan Motor Co.
  • Dongfeng Motor Corp.
  • General Motors Corp.
  • Hyundai Motor Co.
  • Dow Jones Newswires (Jane Lanhee Lee, 2005)
  • COMTEX (http://www.comtexnews.com)