Fast Facts
- Nissan on Monday unveiled The Arc, a new business plan that spotlights a push into EVs.
- The company said it will launch 30 new models by 2026, 16 of which will be electrified.
- Nissan is also exploring methods of reducing cost in EV production.
Japanese automaker Nissan is looking to enhance its competitiveness within the electric vehicle sector, with targets under a new business plan to cut the cost of next-generation EV production by 30%, alongside plans to achieve cost parity between EV and gas-powered cars, by the end of the decade.
In a new medium-term business plan called The Arc, which Nissan announced Monday, the company said it plans to launch 30 new models by fiscal year 2026, 16 of which will be electrified.
Related: The electric vehicle market had a record year in 2023
"The EV sector is coming much, much earlier than what we thought, especially on the price point," Nissan President and CEO Makoto Uchida told CNBC Monday. "There's a lot of new carmakers coming in, so how we can cope with that is going to be most important."
This push into EVs comes after a year that was marked by cooling demand and a steady reduction in once-ambitious electric plans from a series of major automakers, notably Ford (F) and General Motors (GM) .
Though 2023 was a record year for EV adoption — with global sales of EVs (including plug-in hybrids) rising 31% year-over-year — the rate of that growth was far below the 60% growth rate notched in 2022.
Part of the reason behind this involves a hesitant mass market, concerned with issues of range, cost and a lack of charging infrastructure. The other component involves challenges with EV production that have made EV profitability a difficult prospect for many companies.
Nissan's answer to this involves a new effort to develop EVs in "families," allowing the company to integrate powertrains and take advantage of next-generation "modular manufacturing," which Nissan said will allow it to heavily reduce the cost of EV production.
The automaker said that, through family development alone, the production cost of subsequent vehicles based on the main vehicle in a family can be cut by 50%. Modular manufacturing will shorten the Nissan's production line, cutting time per vehicle by 20%.
Nissan said that it plans to launch 34 electrified models between fiscal year 2024 and 2030 to "cover all segments."
Uchida said in a statement that the plan will "enhance Nissan's competitiveness" and allow the company to achieve "sustainable profitability."
Nissan said The Arc plan could result in revenues of 2.5 trillion yen by fiscal year 2030 ($16 billion).
Contact Ian with tips and AI stories via email, ian.krietzberg@thearenagroup.net, or Signal 732-804-1223.
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