Nissan May Move Ultra-Compact EV Production In-House by 2028
Nissan is considering bringing the production of its ultra-compact electric vehicles in-house, potentially starting from April 2028. This move comes as a result of the growing success of the Sakura model, currently produced by junior partner Mitsubishi Motors. Although Nissan and Mitsubishi have denied the plan, sources close to the matter say that the automaker is eyeing its factory on the southern island of Kyushu for the potential in-house production.
What’s Happening & Why This Matters
The Nissan Sakura has been a smash hit in the Japanese market, becoming the best-selling vehicle in the passenger EV category in 2023. This impressive performance is especially significant for Nissan, as the company’s EV efforts have faced heavy competition from rivals like Tesla and BYD. By transitioning production to an in-house model, Nissan aims to improve its profit margin, expand its kei EV sales, and raise production efficiency.
The Nissan Sakura, meaning “cherry blossom” in Japanese, has garnered a 42% share of the passenger EV market share in Japan, with nearly 64,000 vehicles sold since its launch in mid-2022. This success is a bright spot for Nissan, especially as its EV initiatives have been overshadowed by international rivals. By bringing the production of light EVs in-house, Nissan hopes to drive down costs and boost efficiency, considering the potential for increased demand in the Japanese market. Nissan plans to continue working on planning and development through its joint venture with Mitsubishi. The company’s Kyushu plant currently has an annual production capacity of 500,000 vehicles and anticipates using about 80% of that capacity in the current business year.
TF Summary: What’s Next
Nissan believes that the demand for kei electric vehicles will continue to grow, as they are cost-effective and well-suited for short-distance travel.
To accommodate in-house kei EV production, Nissan will shift the production of its North America-bound Rogue SUV to another part of their facilities. With plans for expansion and improved efficiency, Nissan’s ambitions for the future are well underway.