Nissan, a stalwart in the automotive industry, has recently unveiled an ambitious business plan dubbed “The Arc.” This three-year strategy aims to revitalize the brand’s electrified vehicle segment while counteracting a decline in global sales that has persisted for years.
Central to this plan is a concerted effort to enhance electric vehicle (EV) affordability and accessibility. Nissan plans to achieve this by leveraging advancements in battery technology, particularly through the utilization of lithium iron phosphate and solid-state batteries. The objective? Slashing the costs of next-generation battery electric vehicles by a substantial 30 percent.
The cornerstone of Nissan’s strategy involves achieving cost parity between EVs and internal combustion engine (ICE) vehicles by 2030. Through innovative product development and manufacturing techniques, Nissan is determined to bridge the price gap, thereby making electric mobility a more viable option for consumers worldwide.
As part of “The Arc,” Nissan plans to ramp up its global battery capacity by an impressive 135 gigawatt-hours. This surge in capacity will facilitate the production of approximately 1.35 million EVs by the decade’s end. Moreover, the company intends to introduce 30 new models over the next three years, comprising 16 electrified vehicles and 14 ICE-powered ones, catering to diverse consumer preferences.
CEO Makoto Uchida, spearheading his second midterm plan since assuming leadership, emphasizes the imperative to adapt to the evolving automotive landscape. Following the turbulence triggered by former Chairman Carlos Ghosn’s departure, Uchida’s strategic vision aims for sustainable growth, profitability, and operational efficiency.
Despite mixed results from the previous plan, Nissan remains resolute in its pursuit of growth. The Arc endeavors to propel annual global sales by an additional 1 million units by the fiscal year ending March 31, 2027. While this represents a significant advancement, it falls short of the initial targets set by Uchida upon his appointment.
Acknowledging the need for transformation, Uchida underscores the ethos of adaptability in the face of disruption. Nissan aims to surpass the 6 percent operating profit margin threshold by March 31, 2027, aligning with its commitment to fiscal resilience and competitiveness.
Key objectives outlined under “The Arc” encompass market-specific initiatives, including the introduction of e-Power hybrid technology and plug-in hybrid models in the U.S. market. In Europe, Nissan endeavors to launch six new models and achieve a 40 percent EV model mix by 2027. Meanwhile, strategic expansions in China, Japan, and India underscore Nissan’s global ambitions.
Despite challenges, Nissan’s diversified portfolio positions it for success in the rapidly evolving automotive landscape. With a commitment to electrification and innovation, Nissan’s trajectory under “The Arc” heralds a promising future, marked by sustainability, profitability, and consumer-centricity