Tokyo,
July 25 (Jiji Press)--Nippon Steel Corp.'s decision to end its automotive steel
sheet joint venture in China with Baoshan Iron & Steel Co. reflects
Japanese automakers' struggle in the Chinese electric vehicle market.
The
decision by the Japanese steelmaker will reduce its steel production capacity
in China by as much as about 70 pct. The company plans to redirect resources to
the U.S. and Indian markets.
EV sales
in China have been expanding amid massive government support to domestic
makers. Sales of new energy vehicles, including EVs, shot up by more than 30
pct in the first half of this year to roughly five million units, or 35 pct of
all vehicles sold in the country.
Japanese
automakers are adept at manufacturing hybrid and gasoline-powered vehicles
while trailing in the development of EVs. Many Japanese makers are reducing
their market presence in China as a result.
Mitsubishi
Motors Corp. last autumn announced its withdrawal from auto production in
China. Nissan Motor Co. shuttered a plant in China's Jiangsu Province last
month. Toyota Motor Corp. and Honda Motor Co. have made steep job cuts in
China.