Nissan Considers Plant Closures in India, Japan and Beyond Amid Global Restructuring
| 2025-05-17
Japanese automaker Nissan is reportedly considering shutting several manufacturing plants, including one in India, as part of a sweeping cost-cutting strategy aimed at reviving its global operations.
Nissan may shut manufacturing plants in India, Japan, Mexico and more as part of a major global cost-cutting strategy under new CEO Ivan Espinosa.
Japanese automaker Nissan is reportedly considering shutting several manufacturing plants, including one in India, as part of a sweeping cost-cutting strategy aimed at reviving its global operations.
Nissan Motor Company is evaluating the closure of multiple vehicle assembly plants across Japan and overseas markets, including India, South Africa, Argentina and Mexico, according to sources cited in Japanese media and international news reports. The potential move forms part of a broad restructuring effort launched by the company’s new Chief Executive Officer, Ivan Espinosa.
The automaker is reportedly considering shuttering its Oppama and Shonan plants in Japan, which would reduce its domestic manufacturing footprint to just three facilities. The two factories—located in Kanagawa Prefecture—are among Nissan's oldest production bases. The Oppama plant began operations in 1961 and was the first to manufacture the Nissan Leaf, one of the world's earliest mass-market electric vehicles. It has an annual capacity of around 240,000 units and employed approximately 3,900 people as of October 2024. The Shonan facility, which produces commercial vans, has an annual capacity of about 150,000 units and a workforce of 1,200.
If confirmed, these would be Nissan’s first factory closures in Japan since the Murayama plant was shut in 2001.
India Operations Under Review
In India, the company has already announced plans to sell its majority stake in Renault Nissan Automotive India Private Ltd (RNAIPL) to French partner Renault. Nissan held a 51% stake in the Chennai-based joint venture. The Indian plant will now continue operations under Renault, which will manufacture Nissan-branded models under contract.
In India, the company has already announced plans to sell its majority stake in Renault Nissan Automotive India Private Ltd (RNAIPL) to French partner Renault. Nissan held a 51% stake in the Chennai-based joint venture. The Indian plant will now continue operations under Renault, which will manufacture Nissan-branded models under contract.
This move reflects the company's struggle to expand its market share in India despite investing over €550 million to date. A further €140 million had been pledged for future product development, but that strategy is now being re-evaluated. Nissan has confirmed that it will rely on Renault’s production facilities to continue selling vehicles in the Indian market.
Global Restructuring Strategy
The potential closures are part of a larger initiative to reduce Nissan’s global production capacity from 17 plants to 10 by the end of the 2027 fiscal year. As part of this plan, the company also intends to cut around 15% of its workforce—an estimated 20,000 jobs worldwide.
The potential closures are part of a larger initiative to reduce Nissan’s global production capacity from 17 plants to 10 by the end of the 2027 fiscal year. As part of this plan, the company also intends to cut around 15% of its workforce—an estimated 20,000 jobs worldwide.
The restructuring marks a clear departure from the policies of former CEO Makoto Uchida, who resisted plant closures and had championed global expansion. Ivan Espinosa, who took over as CEO in April 2025, has introduced what the company is calling the “Re: Nissan” plan. This strategy prioritises profitability over expansion and focuses on consolidating operations around fewer, more technologically advanced facilities.
The automaker is targeting cost reductions of 500 billion yen (approximately US$3.4 billion) over the next two years. In line with this new focus, Nissan has abandoned plans to build a 160 billion yen (US$1.1 billion) electric vehicle battery plant in Kitakyushu, Japan, as it reassesses its capital expenditure priorities.
No Official Confirmation
In a statement on its website, Nissan described media reports of plant closures as speculative. “At this time, we will not be providing further comments on this matter,” the company said. “We are committed to maintaining transparency with our stakeholders and will communicate any relevant updates as necessary.”
In a statement on its website, Nissan described media reports of plant closures as speculative. “At this time, we will not be providing further comments on this matter,” the company said. “We are committed to maintaining transparency with our stakeholders and will communicate any relevant updates as necessary.”
Financial Challenges
The company’s move toward consolidation comes amid a challenging financial environment. Nissan reported a net loss of 670.9 billion yen (around US$4.5 billion) for the fiscal year ending March 2025, compared to a profit of 426.6 billion yen the previous year. Global sales fell to 3.3 million vehicles in FY2024, representing a 42% decline from 2017 levels.
The company’s move toward consolidation comes amid a challenging financial environment. Nissan reported a net loss of 670.9 billion yen (around US$4.5 billion) for the fiscal year ending March 2025, compared to a profit of 426.6 billion yen the previous year. Global sales fell to 3.3 million vehicles in FY2024, representing a 42% decline from 2017 levels.
Nissan has cited a combination of weak sales in China, rising input costs, and intensifying competition in the electric vehicle sector as key reasons behind the downturn.
Japan’s automotive industry is undergoing a period of intense transformation as global manufacturers accelerate investment in electric vehicles and restructure legacy operations. Nissan, once a leader in EV innovation, has faced growing pressure to regain its competitive edge as newer rivals expand their global footprint.
By consolidating production at its Tochigi and Kyushu facilities in Japan—both equipped with advanced manufacturing technologies—the company aims to enhance efficiency and support its shift toward next-generation electric and hybrid vehicles.
While the closures remain unconfirmed, analysts view the reported plans as indicative of a deeper shift in strategy—one that reflects the broader challenges facing traditional automakers in a rapidly evolving global automotive market.
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