Nissan pushes electric vehicle expansion in China amid U.S. tariff challenges

In April 2025, the Shanghai auto show showcased the growing focus of many automakers on the global market, particularly as U.S. tariffs complicate the automotive supply chain dynamics. Companies like Gestamp have experienced slowdowns in the U.S. and Western European markets but are now expanding operations in regions such as Asia, Latin America, and Eastern Europe. The need for adaptability in business practices has become paramount, with companies like Wuhan Kotei Informatics adjusting their software offerings to provide consulting rather than solely selling products to maintain competitiveness. Gestamp's Chief ESG Officer Ernesto Barcelo highlighted the shift in supply chains, which have become increasingly unpredictable due to tariffs and geopolitical tensions. The 45.3% tariffs that the EU has imposed on electric vehicles from China further complicate matters, making it essential for companies like Great Wall to concentrate on expanding trade channels in regions like Europe while keeping an eye on developing markets. Japanese automaker Nissan is planning a substantial investment of $1.4 billion by 2026 to introduce ten new electric vehicles (EVs) in China by 2027, with the majority being its own brand. While facing tariffs in the U.S., Nissan is afforded the opportunity to increase its spare capacity for manufacturing in order to mitigate reduced imports. The company's strategy underscores the importance of the Chinese market in the evolving automotive landscape. While uncertainties in the market persist, analysts and industry insiders remain hopeful that the political stance on tariffs will eventually soften as they view these measures as temporary. Such optimism suggests that firms should prepare for fluctuations in policy while continuing to innovate and adapt to maintain their competitive edge in both local and global markets. This view is echoed by Yang Jingdi, an assistant to the CEO of LvXiang Automobile Parts Co., who believes that China's robust supply chains will position the country favorably in the long run as tariff negotiations continue.