Nissan is embarking on an ambitious plan to reduce the manufacturing expenses of its electric vehicles (EVs) by 30%, aiming to fortify its position against the escalating competition from Chinese counterparts.
The Japanese automaker, in collaboration with France’s Renault and recently announced partnership with Honda, is recalibrating its strategies to combat declining sales in China, where the automotive industry grapples with the challenge of producing profitable battery-powered vehicles at competitive prices.
Revealed on Monday, Nissan’s business blueprint outlines a comprehensive approach to finance the development of new technologies and navigate the transition towards electric vehicles. The plan targets a substantial increase in annual sales by 1 million units by the conclusion of its fiscal year 2026.
Key components of the strategy include the introduction of 30 models over the next three years, with nearly half devoted to electric and hybrid vehicles. Notably, in China, Nissan plans to roll out eight “new energy” vehicles while commencing local production for export from the following year. Additionally, North America is earmarked for a surge in sales, with an ambitious target of 330,000 more vehicles sold by fiscal year 2026 compared to 2023. India is positioned as a pivotal export hub.
A notable milestone in Nissan’s agenda is the launch of an electric vehicle powered by solid-state batteries by fiscal year 2028.
Nissan’s CEO, Makoto Uchida, emphasized the company’s proactive response to market dynamics, aiming for sustainable growth and profitability amidst extreme volatility.
The strategic move follows Nissan’s surprising collaboration with longtime rival Honda, aimed at jointly developing electric vehicles to counter the imminent influx of high-tech, cost-efficient models from China.
While the alliance with Renault and Mitsubishi Motors persists in select markets, concerns loom over its future trajectory following Renault’s reduction of its stake in Nissan.
Nissan’s roadmap entails measures to enhance the affordability and profitability of electric vehicles, including streamlining production processes, component integration, cost optimization, and battery technology advancement. The ultimate goal is to achieve cost parity between electric and traditional combustion engine vehicles by fiscal year 2030.
However, challenges persist as carmakers currently incur significant losses on electric vehicle sales, highlighting the urgency of Nissan’s cost-reduction efforts.
Nissan’s recent downward revision of annual sales targets underscores the necessity of a robust business strategy, particularly in key markets like China and the US, where market dynamics demand strategic repositioning to capitalize on emerging trends.
