A Nissan Ariya electric car is on display during the 2020 Beijing International Automobile Fair (Auto China 2020) at the China International Exhibition Center on September 27, 2020 in Beijing, China.
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Nissan is aiming for an additional one million vehicle sales over the next three years and a 30% reduction in electric vehicle production costs by 2030, the Japanese automaker announced Monday.
In a new medium-term business plan, Nissan also said it will launch 30 new models by fiscal 2026, including 16 electrified models. The goal is for the costs of electric vehicles and combustion engines to reach parity by 2030.
“This plan will allow us to go further and faster in driving value and competitiveness,” Nissan President and CEO Makoto Uchida said in a statement.
“In the face of extreme market volatility, Nissan is taking decisive actions guided by the new plan to ensure sustainable growth and profitability.”
The automaker also said it is targeting an operating profit margin above 6% by the end of fiscal 2026, as well as “long-term profitable growth.”
This comes as the hype around electric vehicles appears to have cooled somewhat recently, with major manufacturers including Ford Motor, General Motors, Mercedes-Benz and Volkswagen scaling back or delaying electric vehicle plans due to growing demand. decline. Also a giant in the sector Tesla is bracing for what CEO Elon Musk said in January “could be a significantly lower growth rate.”
Even traditional Western automotive powers face a huge competitive challenge from China when it comes to electrification. The country boasts the world’s largest and most crowded electric vehicle market, and its automakers are putting significant downward pressure on prices.
Nissan’s plan: The Arc
Under the two-part plan called The Arc, Nissan said it will aim to deliver volume growth through a “tailored regional strategy” and prepare for an accelerated transition to electric vehicles by balancing its portfolio between electric and combustion vehicles, increasing volumes in key markets and financial discipline.
This will be supported by “smart partnerships, increased competitiveness of electric vehicles, differentiated innovations and new revenue streams”.
Nissan said this strategy could generate potential revenues of 2.5 trillion yen ($16 billion) from new business opportunities by fiscal 2030.
This is breaking news and will be updated shortly.