Nissan has announced ambitious plans to compete with China as it hopes to slash the costs of electric vehicles by 30 per cent by 2030.
As part of its Arc Business Plan, the car manufacturer aims to create 30 new models by 2026, of which 16 will be electric.
Nissan's EV competitiveness forms part of its partnership with Honda which looks at pulling together resources to compete with China’s monopoly on electric cars.
In the Arc strategy, Nissan said it will support the cost reductions through grouped "family" development, with vehicle production under the approach starting in fiscal year 2027.
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Under the plan, Nissan stated it hopes to lift annual sales by one million units
NISSAN
Makoto Uchida, president and CEO of Nissan, said: "The Arc plan shows our path to the future. It illustrates our continuous progression and ability to navigate changing market conditions.
“This plan will enable us to go further and faster in driving value and competitiveness.
“Faced with extreme market volatility, Nissan is taking decisive actions guided by the new plan to ensure sustainable growth and profitability."
Across Europe, Asia and Africa, the carmaker plans to increase sales units by 300,000 units in 2026 and launch six all-new models in Europe with 40 per cent EVs.
Under the plan, Nissan stated it hopes to lift annual sales by one million units and increase its operating profit margin to more than six per cent, both by the end of 2026.
This will help pave the way for the second part of the plan which aims to enable the EV transition for the company Nissan added.
By 2030, Nissan estimates a revenue potential of 2.5 trillion yen (£13billion) from new business opportunities.
Uchida continued: "Under this comprehensive plan we will enhance Nissan's competitiveness and achieve sustainable profitability.
"Nissan is confident that it has what it takes to properly execute this plan, which will provide us with the firm foundation we need to bridge to our Nissan Ambition 2030 vision."
Last week, Nissan and Honda joined forces to tackle the rise in Chinese electric vehicles.
The partnership follows Chinese company Li Auto releasing its first pure electric car earlier this month, while BYD continues its EV production, selling over three million electric vehicles last year.
The Arc plan also sees more plants in Japan and overseas adopt the Nissan Intelligent concept to produce more EVs.
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Nissan and Honda join forces to develop EV technology
REUTERSThe Oppama and Nissan Motor Kyushu plants in Japan, the Sunderland Plant in the UK and Canton and Smyrna plants in the United States will start to adopt the EV rollout from 2026 through 2030.
Commenting on the Nissan-Honda partnership, Toshihiro Mibe, Honda director, president and representative executive officer, added: “In this period of once-in-a-century transformation in the automotive industry, we will examine the potential for partnership between Nissan and Honda.
“Our study criteria will be whether the synergy of the technologies and knowledge that our companies have cultivated will enable us to become industry leaders by creating new value for the automotive industry.”