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Home / Auto News / Nissan unveils $18 billion long-term electric vehicle strategy

Nissan unveils $18 billion long-term electric vehicle strategy

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  • The Japanese company will introduce 23 new models by fiscal 2030, including 15 new electric vehicles

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Nissan Motor Co. will invest 2 trillion yen ($17.6 billion) over the next five years to electrify more of its lineup and turn battery-powered cars into a pillar of its long-term growth. The Japanese company said Monday it will introduce 23 new models by fiscal 2030, including 15 new electric vehicles, and aim for half of its fleet to be electrified by then.

Nissan Motor Co. will invest 2 trillion yen ($17.6 billion) over the next five years to electrify more of its lineup and turn battery-powered cars into a pillar of its long-term growth. The Japanese company said Monday it will introduce 23 new models by fiscal 2030, including 15 new electric vehicles, and aim for half of its fleet to be electrified by then.

Nissan, on track to return to annual profit for the first time in three years, is seeking to use know-how it amassed as an early entrant into the EV market as a foundation for growth. The Yokohama-based automaker was an early leader, releasing the world’s first mass-produced EV, the Leaf, in 2010. The Leaf is still one of the world’s top-selling EVs, though in recent years its annual sales have been outpaced by Tesla Inc.’s models.

Nissan, on track to return to annual profit for the first time in three years, is seeking to use know-how it amassed as an early entrant into the EV market as a foundation for growth. The Yokohama-based automaker was an early leader, releasing the world’s first mass-produced EV, the Leaf, in 2010. The Leaf is still one of the world’s top-selling EVs, though in recent years its annual sales have been outpaced by Tesla Inc.’s models.

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Nissan has been ramping up its EV ambitions and announced a slew of investments, including plans to build a $1.4 billion hub to manufacture battery-powered cars in the U.K.

The company’s much-anticipated Ariya SUV and other electric models are set to join an increasingly saturated market. Over the next decade, global EV sales are forecast to rise above 10 million a year from around 1 million today. That’s drawing competition. 

The world’s second-biggest automaker, Volkswagen AG, is investing heavily in a bid to unseat Tesla as the top EV maker, while others like General Motors Co. and Honda Motor Co. have committed to selling only EVs in two decades.

Though smaller than others on its own, Nissan aims to use the scale of its alliance with Renault SA and Mitsubishi Motors Corp. to lower the cost of EV parts such as batteries, Chief Executive Officer Makoto Uchida said in a recent interview.

The new electrification-oriented long-term strategy, called Nissan Ambition 2030, is a step beyond a midterm turnaround plan unveiled in 2020 as the company grappled with an aging lineup and incentive-fueled sales cutting into profitability.

That four-year plan involved eliminating about 300 billion yen in annual fixed costs, cutting production capacity by around 20% and launching a dozen new vehicle models. 

Cost cuts and better profit margins on car sales -- both tenets of the so-called Nissan Next plan -- have helped offset volume lost due to parts shortages. Nissan is forecasting an operating profit of 180 billion yen for the fiscal year through March.

This story has been published from a wire agency feed without modifications to the text.

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