Nissan to End Vehicle Production at Wuhan Plant

Nissan Motor India is taking steps to streamline its operations and manage costs following the sale of its stake in Renault Nissan Automotive India (RNAIPL). The company is cutting non-core functions at Renault Nissan Technology & Business Centre India (RNTBCI), which handles back-office services like finance, HR, and IS/IT through its Global Business Services (GBS) and shared service center teams. As part of this move, Nissan is transferring GBS and shared service center employees to Accenture for IS/IT roles and Genpact for finance and HR roles. This transition is expected to be completed by mid-June, according to an internal circular.
The decision to streamline operations stems from a regular assessment of operations across regions, with tight cost management and financial discipline being critical for ensuring sustainability. A Nissan India spokesperson confirmed that there would be no job losses as a result of this project, emphasizing that the changes are aimed at improving competitiveness and meeting future challenges.
Separately, Nissan has engaged in a bulk deal with a multi-brand pre-owned car retailer, Big Boy Toyz (BBT), to offload over half of the 150 X-Trail SUVs it imported in July 2024. These "zero mile" seven-seater SUVs are being offered at around a 40% discount, priced at ₹29,50,000 compared to the original price of ₹49.92 lakh. This bulk sale has reportedly upset Nissan's authorized dealers, who had previously requested permission to sell the X-Trail at a lower price of around ₹35 lakh but were refused.
Nissan defended the move as a normal industry practice for bulk queries and corporate deals, stating that details remain confidential. However, industry veterans have noted that resorting to a bulk sale within a year of launch is unusual, especially without consulting channel partners. The X-Trail's poor performance has been attributed to its high pricing and omission of standard features.
In related news, Nissan Motor wants to end vehicle production at its Wuhan plant in China by March 31, 2026, due to low operation rates. The plant, which produces the Ariya EV and X-Trail SUV, has only reached about 10,000 units in annual production since 2022. Nissan is forecasting a record net loss of 700 billion yen to 750 billion yen ($4.87 billion-$5.22 billion) due to impairment charges for the financial year that ended on March 31.