The article below is sourced from Bloomberg Wire Service. The views and opinions expressed in this story are those of the Bloomberg Wire Service and do not necessarily reflect the official policy or position of NADA.
Nissan Motor Co. is targeting an additional 1 million vehicle sales within three years as the Japanese carmaker seeks to regain market momentum and boost profitability.
The goal, unveiled Monday as part of the automaker’s new three-year plan, is to achieve an operating profit margin of at least 6% in that period by introducing dozens of new models — including more cost-effective EVs — and forging partnerships, the Yokohama-based company said.
“We can’t succeed if we keep doing things the same way,” Makoto Uchida, Nissan’s chief executive officer, said at a news conference at its development center in Atsugi, near Yokohama.
Nissan lowered its annual sales target for the second time last month to 3.55 million units from 3.7 million — and 4 million originally — for the fiscal year ending this month. The carmaker, which has seen a steep sales drop in China, cited intensifying competition and a logistics disruption, which it described as temporary. Even so, it’s forecasting higher operating profit during the period, thanks to cost-cutting measures.
In the current uncertain global automotive market, “We have to change our ways to compete with companies like BYD,” Uchida said in an interview with Bloomberg News. Nissan, he added, must be “flexible” in its approach.
Last week, Uchida and Honda Motor Co. President Toshihiro Mibe announced a partnership to develop EV technology. The rivals, which initially signed a memorandum of understanding, said they will collaborate on core technology for battery-based electric vehicles, including software. “We both understand a sense of urgency” in their competition with new global players, Uchida said in the interview.
During the briefing, Uchida said he wants to strengthen Nissan’s position in Latin America, Southeast Asia and India with existing partners Renault SA and Mitsubishi Motors Corp.
Nissan said it plans to add ¥2.5 trillion ($16.5 billion) in fresh revenue through “new business ventures” by fiscal year 2030. The carmaker is planning to introduce 30 new models over the next three years, of which 16 will be electric vehicles.
Nissan is also seeking to reduce the cost of next-generation EVs by 30%, and aims for cost parity between electric and combustion-engine vehicles by fiscal 2030. To support its focus on to electric vehicles, Nissan plans to invest more than ¥400 billion in battery capacity, and begin rolling out vehicles with solid-state batteries during the fiscal year beginning in April 2028.
Behind this push is intensifying competition from China, where BYD Co. and other EV manufacturers are building and selling EVs at more affordable prices.
To compete in China, Nissan said it will roll out eight “new energy” vehicles, and start exporting cars made in the country from 2025, with the aim of shipping 100,000 vehicles annually. Nissan is targeting annual sales in China of 1 million units by March 2027, from about 800,000 cars a year now.
To hit its target, Nissan will rely on partners, including its Chinese joint ventures, to manufacture half of the increased production, Uchida said in the interview.
Nissan is also looking to increase sales in North America by 330,000 units over four years through March 2027, and invest $200 million in the US. The automaker said it sold 1,233,572 vehicles in North America in 2023.
For more stories like this, bookmark www.NADAheadlines.org as a favorite in the browser of your choice and subscribe to our newsletter here:
