Nissan CEO: Demand for EVs is growing, but not consistent

Nissan is targeting an additional 1 million vehicle sales over the next three years and a 30% reduction in electric vehicle production costs by 2030, the Japanese carmaker announced Monday.

In a new medium-term business plan, Nissan also said it would launch 30 new models by fiscal year 2026, with 16 of these electrified. It’s aiming for EV and combustion engine costs to reach parity by 2030.

“This plan will enable us to go further and faster in driving value and competitiveness,” Nissan President and CEO Makoto Uchida said in a statement.

“Faced with 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 of more than 6% by the end of fiscal 2026, as well as “long-term profitable growth.”

‘A lot of uncertainty’

A Nissan Ariya electric car is on display during 2020 Beijing International Automotive Exhibition (Auto China 2020) at China International Exhibition Center on September 27, 2020 in Beijing, China.

Vcg | Visual China Group | Getty Images

To address this, Nissan plans to develop EVs in “families,” integrate powertrains and focus on battery innovations as it looks to cut the cost of its next-generation fleet by 30% when compared to the current model Ariya crossover.

“In order to do that, we have to have a great partnership with our suppliers to work on from the app stream earlier with the scale that we have to provide,” Uchida told CNBC’s “Squawk Box Europe.”

“Otherwise, I think the next five years, there’s a lot of uncertainty that we are facing. The scalability will be most important, and how are we going to make that as a Nissan collaboration with a partnership is going to be one of the key items.”

Nissan’s plan: The Arc

Under the two-part plan dubbed The Arc, Nissan said it will aim to ensure volume growth through a “tailored regional strategy,” and prepare for an accelerated EV transition by balancing its portfolio between EV and combustion cars, growing volumes in major markets and financial discipline.

This will be supported by “smart partnerships, enhanced EV competitiveness, differentiated innovations and new revenue streams.”

Nissan said this strategy could yield potential revenues of 2.5 trillion yen ($16 billion) from new business opportunities by fiscal 2030.

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