Nissan plans to update its lineup and enhance earnings. The Japanese automaker plans to debut 30 new models in three years and sell 1 million cars globally and seeks to streamline its operations to save costs and increase revenues.
Nissan's medium-term business plan update calls for an operating profit margin of over 6% by March 2027. Also, the Japanese corporation wants shareholder returns above 30%, according to The Japan Times.
Nissan has experienced severe competition from Tesla in the EV industry, notably in China, the world's biggest auto market, despite its early leadership with models like the Leaf.
Nissan President and CEO Makoto Uchida admitted to sales volume issues in China. He expressed optimism about recent advancements and planned to optimize manufacturing and work with joint venture partners to satisfy Chinese customers' changing wants.
(Photo : PHILIP FONG/AFP via Getty Images)
Makoto Uchida, president and CEO of Nissan, attends a joint press conference with Toshihiro Mibe (not pictured), Honda director, president and representative executive officer in Tokyo on March 15, 2024.
Establishing Strategic Partnerships
Makoto Uchida believes that working with partners in China, Nissan will "continue to optimize our production levels and work with products that allow us to grow in the market."
The car manufacturer, headquartered in Kanagawa, aims to sell 60% of electric cars, including hybrids, worlwide, up from 55% in February 2023.
Moreover, Nissan has announced plans for new models and electrification in the U.S., Canada, China, Europe, and beyond. Nissan plans to launch seven new models and revamp 78% of its passenger car portfolio in North America.
To capitalize on China's booming demand for EVs and hybrid cars, Nissan aims to launch eight new-energy vehicles, four of which will be Nissan-branded. In Europe, the car manufacturer will launch six new models to expand its product offering.
Nissan noted that will pursue new collaborations in the U.S. and Japan and use its alliances with Renault and Mitsubishi Motors in Europe, India, and Latin America to assist its development. Nissan also seeks to improve its position in the competitive automobile industry and innovate in electrification and beyond via strategic partnerships and global network use.
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In a recent TechTimes report, Nissan and Honda, two major Japanese automobile manufacturers, formed a partnership to advance EVs and auto intelligence. The CEOs of both firms announced their desire to collaborate during a Tokyo news conference.
Nissan and Honda are still negotiating their agreement, but both firms say they will develop fundamental technology together while keeping distinct product lines. While no mutual capital ownership is involved, both major car makers remain open to exploring possibilities, with Uchida reaffirming their commitment to enhancing competitiveness.
Cutting Down Costs as Market Demand for EV Slows Down
Nissan's latest actions comes as electric vehicle demand is cooling, with several major manufacturers pulling down or postponing their EV ambitions. China is also challenging traditional automakers in electrification.
In response to the EV industry challenges, Nissan will develop EVs in "families," combine powertrains and concentrate on battery advancements to cut costs by 30% for its next-generation fleet in response to the changing scenario. To scale and overcome market risks, the firm emphasizes supplier alliances, according to CNBC.
Nissan's Arc plan uses a regional approach to boost volume and prepare for a quicker EV transition while preserving financial discipline. Nissan expects 2.5 trillion yen ($16 billion) in new business revenues by fiscal 2030 with this holistic strategy.
"Faced with extreme market volatility, Nissan is taking decisive actions guided by the new plan to ensure sustainable growth and profitability," Uchida noted in a statement.
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