Infiniti Denies Rumors of Withdrawing from Chinese Market
Infiniti has officially refuted rumors circulating on Wechat and Weibo that it is withdrawing from the Chinese market. Despite the brand’s denial, there is evidence suggesting otherwise.
The Japanese luxury brand was notably absent from this year’s Guangzhou Auto Show, fueling speculation that it is ceasing production in China. This is not the first time such rumors have surfaced, but this time they seem more credible.
Sales figures paint a grim picture, with only 255 units sold in October and a cumulative total of 1,919 for the year. This represents a significant decline from last year’s total of 5,824 units. Consequently, many dealers have opted to leave the brand since the beginning of the year.
Reports also indicate a large-scale restructuring of personnel within the company. The former head of Infiniti China has been reassigned to the Venucia division of Dongfeng Nissan, and other employees are reportedly considering internal transfers or resignations.
Infiniti has vehemently denied these reports, labeling them as baseless speculation from online sources that have tarnished the brand’s image. The timing of these rumors coincides with the brand’s recent 35th-anniversary celebration, following its establishment in 1989. It’s worth noting that Infiniti has already exited markets in Europe, Australia, and South Korea, with reports suggesting average sales performance in the US.
The Chinese market was once a beacon of hope for Infiniti, with sales starting in 2004 and official entry in 2007. However, challenges arose due to China’s emission tax targeting vehicles with large displacement engines, a core focus for Infiniti. The brand made significant strides in 2012 by relocating its global headquarters to Hong Kong, becoming the first luxury car brand to do so within Greater China.
Infiniti’s relationship with the Chinese market reached new heights in 2014 with the establishment of the Dongfeng Infiniti joint venture. This partnership led to domestic production of Infiniti models and a surge in sales, peaking at 48,408 units in 2017.
However, the brand’s position in China has since been on a downward trajectory. In 2020, the global headquarters returned to Japan, and by 2022, Dongfeng Infiniti had become a division of Dongfeng Nissan. Challenges such as the inability to pivot towards new energy vehicles and a lack of models have hindered Infiniti’s growth. Additionally, issues such as the QX60 model’s negative publicity on consumer rights abuse have further impacted the brand’s reputation.
Update: Nissan has confirmed that Infiniti will be present at the Guangzhou Auto Show, contrary to earlier reports. This clarification strengthens Infiniti’s position and refutes the rumors of its withdrawal from the Chinese market.
Sources: Fast Technology, AI4Auto WeChat
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