Nissan’s EV Strategy Gets a Fresh Charge

Photo Source: NISSAN

Nissan Motor Company is going all in on electrification, promising to rapidly increase its offerings and adopt new technology while slashing costs. Nissan’s expansion of electric vehicles is unusual at a time when numerous automakers are pulling back, as they face stiff competition from typically lower-priced Chinese electric vehicle makers. In line with other automakers, however, Nissan is adapting its production strategy to rebalance its internal combustion engine and electric vehicle output while addressing rising costs and market fragmentation. On March 25, 2024, Nissan announced “The Arc,” its new business plan aims to make the company more competitive and raise its value in the automotive market by 2030.

For reference, Nissan declared its new Arc business plan will act as a bridge between the Nissan NEXT business transformation plan and the company’s longer-term Nissan Ambition 2030 strategy. The plan will focus on increased electrification, new products, the adoption of new technologies, new approaches to engineering and manufacturing, and leveraging strategic partnerships. Additionally, the new strategy comes a little more than a week after Nissan stated it would explore a strategic partnership with fellow Japanese automaker Honda to create “core components” related to electric vehicles.

Nissan Modifies its Goals

The automotive industry is now being forced to reshape its values; that is to say, continuous change is the new normal. For example, according to sources, in the 2021 model year, Nissan said it would make 23 electrified vehicles by 2030 and that 15 would be fully electric rather than some form of hybrid powertrain. At the time of this writing, the Japanese manufacturer aims to launch 30 new models – 16 of which will be electric. 

The question that comes to the fore is whether those vehicles will be all-electric or hybrids. Nonetheless, the company confirmed that it expects to refresh 60 percent of its gas-powered automobiles by 2026, or sometime around May 2027. Moreover, Nissan plans to launch another 18 electric vehicles to cover all market segments and achieve a 60 percent model mix by the end of 2030.

Nissan’s Efforts to Elevate Electrification

“Arc” aims to increase profitability through rationalizing production and balancing gasoline-fueled and electric vehicle output to better manage the differing pace of electrification across different regions and markets. It is worth noting that as part of its electrification goals, Nissan will invest more than $2.6 billion in battery capacity. By adopting new technology, among other measures, the company aims to minimize the cost of next-generation electric vehicles by 30 percent and make them cost about as much as internal combustion engine-powered models by 2030. The manufacturer expects global sales will increase by 1 million units by the end of the decade. 

Another pivotal modification to the initiative is that Nissan appears to be stepping back from its all-solid-state battery plans for 2028. Now, the carmaker’s representatives claim it will produce vehicles with “enhanced NCM li-ion, LFP, and all-solid-state batteries” by that deadline. Reportedly, in Canada and the United States, Nissan plans to launch seven new models and refresh almost 80 percent of its passenger vehicle lineup. In China, where Nissan and Honda have been struggling to match local competitors, Nissan aims to launch eight electric vehicles and grow sales by 200,000 units.

Are you excited about Nissan’s electrification ambitions? If so, please come visit Nissan of Fort Pierce, where we can help sell your current vehicle or bring it back to life like new with an online service appointment to our service center.