Nissan’s Plan to Focus on Hybrids and EVs for U.S. Market
Nissan recently revealed its strategic roadmap, termed The Arc, which aims to shift the automaker’s focus back towards hybrids and plug-in hybrids for the U.S. market, along with producing higher-volume, reduced-cost EVs. The goal is to reduce the cost of next-generation EVs by 30% so that they will be priced the same or lower than combustion models by 2030.
**Family Development and Modularized Powertrains**
Nissan intends to achieve this cost reduction in its next-generation EVs through a grouped “family” development approach, utilizing common upper-body parts and modularized powertrains. Models using this strategy are set to go into production in 2027. The automaker also plans to follow a tailored regional strategy and prepare for an accelerated transition to EVs, supported by a balanced electrified/ICE product portfolio.
**Expansion of Hybrids and Plug-In Hybrids**
Globally, Nissan anticipates that fully electric models will increase from 20% of its global mix in 2026 to 40% in 2030. While the company previously announced its plans for 40% of U.S. sales to be fully electric by 2030, it also intends to refresh 78% of its passenger vehicle lineup and introduce e-Power and plug-in hybrid models.
**Introduction of e-Power Hybrids**
Nissan will introduce e-Power hybrids to the U.S. market in 2026, with a focus on achieving cost parity with combustion engines. The latest iteration of Nissan’s e-Power technology boasts 20% more power, 10% better efficiency, and a 20% cost reduction compared to previous versions. The automaker is transitioning many of its models to a modular propulsion strategy to reduce powertrain costs by around 30%.
**Investments in Battery Technology**
Nissan plans to invest over $2.6 billion in battery capacity to offer EVs with nickel cobalt manganese (NCM), lithium ferrous phosphate (LFP), and all-solid-state batteries to cater to different customer needs. These new battery types are set to be introduced in EVs in fiscal year 2028, with LFP batteries aimed at reducing costs in the minicompact Sakura EV and NCM batteries improving fast-charging times and energy density in a new three-row electric SUV.
**Future Outlook for Nissan’s EV Lineup**
The Nissan Ariya EV, the brand’s second electric vehicle after the Leaf, offers competitive features but faces challenges in pricing and EV tax-credit eligibility. Nissan sees this model as a strong contender in the U.S. market, providing impressive range, an innovative all-wheel-drive system, a user-friendly interface, and a luxurious level of comfort. Additionally, Nissan plans to introduce a successor to the current Leaf by 2026 or 2027 to further expand its EV lineup.
In conclusion, Nissan’s shift towards hybrids and EVs, along with its focus on cost reduction and battery technology advancements, demonstrates the automaker’s commitment to sustainable mobility solutions and capturing a larger share of the electrified vehicle market in the coming years. By leveraging shared components, modularized powertrains, and innovative battery technologies, Nissan aims to offer a diverse lineup of electrified vehicles to meet the evolving needs of customers while enhancing its position as a leader in the electric vehicle space.