Nissan has a different take on Chinese car companies pushing to expand their global footprint—namely that it strengthens the market overall.
The details: Christian Meunier, Nissan’s chairman for the Americas, told reporters in San Paulo that Chinese competition makes the industry stronger and benefits car buyers, reports Bloomberg.
Meunier made the statement in San Paulo, as Chinese electric vehicle makers deepen their market penetration in Latin America, including Brazil and Mexico.
Latin America is a dominant market for Nissan, with the company accounting for 18% of all passenger car sales in Mexico.
What they’re saying: “Competition is not a bad thing,” said Meunier, per Bloomberg. “Our duty is to provide a product and a service and an experience for the customer which is better than the Chinese. And if we do that, we’ll be fine.”
Why it matters: The threat of Chinese competition, especially in price-sensitive markets, can accelerate a value-and-feature arms race that puts pressure on pricing, incentives, and the customer experience. It also raises the bar on speed to lead, transparency, and aftersales support as buyers cross-shop more aggressively.
Between the lines: Meunier’s comments about the benefit of Chinese competition come amid mounting concerns about the threat of the imports and mixed opinions about the best approach to minimizing the blow, as well as lingering geopolitical tensions over trade matters.
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Brazil and Mexico have hiked tariffs on Chinse imports to mitigate the surge in Latin America, prompting some Chinese companies to produce vehicles there locally.
Canada has lowered its tariffs on Chinese imports as it looks to reduce its trade dependency on the U.S., amid ongoing tensions with the Trump administration.
In the U.S., recent discussions about Chinese automakers’ expansion include a model where American firms share profits from Chinese cars sold domestically.
Bottom line: Competition is now a retail reality that seems destined to make its way to the U.S. Dealers would be well served to start preparing now for sharper pricing pressure and faster product cycles in affected segments, and ready to double down on what’s hardest to replicate: disciplined inventory strategy, a smoother purchase experience, and stronger service retention.
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