April The Japanese automaker announced Monday that it aims to sell an additional million vehicles over the next three years and reduce electric vehicle production costs by 30% by 2030.
In a new medium-term business plan, Nissan also said it will launch 30 new models by fiscal year 2026, including 16 electric models. It aims for the costs of electric cars and combustion engines to reach parity by 2030.
“This plan will enable us to go further and faster in enhancing value and competitiveness,” Makoto Uchida, Nissan's president and CEO, said in a statement.
In the face of extreme market volatility, Nissan is taking decisive action 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'
The Nissan Ariya electric vehicle is on display during the 2020 Beijing International Auto Show (Auto China 2020) at the China International Exhibition Center on September 27, 2020 in Beijing, China.
VCG | China Optical Group | Getty Images
To address this issue, Nissan plans to develop electric vehicles in 'families', combining engines and focusing on battery innovations as it looks to reduce the cost of the next-generation fleet by 30% compared to the current Ariya Cross.
“In order to do that, we have to have a great partnership with our suppliers to work it through the application earlier in the volume we have to supply,” Uchida told CNBC's Squawk Box Europe.
“Otherwise, I think in the next five years, there will be a lot of uncertainty that we face. Scalability will be the most important, and how we will achieve that as Nissan cooperates with the partnership will be one of the main factors for purposes.”
April Plan: Sagittarius
Under the two-part plan, dubbed “Arc,” Nissan said it will aim to ensure volume growth through a “tailored regional strategy,” prepare for the rapid transition from electric vehicles by balancing its portfolio between electric and combustion-powered vehicles, and increase volumes. In key markets and financial discipline.
This will be supported by “smart partnerships, enhanced electric vehicle competitiveness, diversified innovations, and new revenue sources.”
Nissan said this strategy could generate a potential revenue of 2.5 trillion yen ($16 billion) from new business opportunities by fiscal 2030.
