TOKYO - Nissan Motor Co. will close its passenger car factory in Jiangsu province, China, people familiar with the matter said Friday, as the Japanese automaker faces intensifying price competition and the rising popularity of electric vehicles made by local brands.

Like its Japanese peers, Nissan has been struggling with declining sales in the world's largest auto market. Limited options in all-electric cars have been a major setback for Japanese companies as China is experiencing a rapid shift to EVs.