Nissan Motor will look to slash the cost of its next-generation electric vehicles by 30% to reach cost parity between its EVs and conventional gasoline models by fiscal year 2030, the Japanese car-manufacturing giant said on Monday in a new business plan.
Nissan, which was an early adopter of EV technology and has been making the Nissan LEAF, a battery-electric powered compact car, since 2010, has been feeling intense competition from a crowded market in recent years, including from cheap models from China.
In the new business plan, dubbed 'The Arc', Nissan pledges it would launch 30 new models by fiscal year 2026, of which 16 will be electrified.
The Japanese auto giant will target to boost the competitiveness of its EV offering by reducing the cost of next-generation EVs by 30%, when compared to the current model Ariya crossover, and achieving EV and ICE vehicle cost parity by fiscal year 2030.
Nissan believes that a significant next-generation EV cost reduction could be achieved through grouped "family" development of cars, with vehicle production under this approach starting in fiscal year 2027.
"The product offensive will be supported by new development and manufacturing approaches aimed to make EVs more affordable and increase profitability," said the car manufacturer, adding that the approaches would involve "developing EVs in families, integrating powertrains, utilizing next-generation modular manufacturing, group sourcing, and battery innovations."
In the area of family development alone, the cost of subsequent vehicles can be reduced by 50%, the variation of trim parts reduced by 70%, and development lead time shortened by four months. By adopting modular manufacturing, the vehicle production line will be shortened, reducing the production time per vehicle by 20%, Nissan says.
As part of the plan, more Nissan factories globally are set to adopt the Nissan Intelligent Factory concept, with the Oppama and Nissan Motor Kyushu plants in Japan, the Sunderland Plant in the UK, and Canton and Smyrna plants in the U.S. starting the adoption from fiscal year 2026 through 2030.
By Charles Kennedy for Oilprice.com
Charles is a writer for Oilprice.com More