Nissan Motor to Launch 30 New Models and Aim for Higher Global Sales
Introduction:
Nissan Motor announced its plans to launch 30 new models by the financial year ending in March 2027. The company aims to raise its global sales by 1 million vehicles and improve profitability by cutting costs. Nissan also targets an operating profit margin of over 6% and total shareholder returns of more than 30% by the specified timeline. This update to its medium-term business plan comes as Nissan faces tough competition in the global automotive market, particularly in the electric vehicle (EV) segment.
Nissan was one of the early leaders in the EV market with its all-battery-powered Leaf. However, the company has lagged behind competitors like U.S. rival Tesla and Chinese leader BYD, especially in China, the world’s largest car market. To address this challenge, Nissan plans to have electrified vehicles, including hybrids, account for 60% of global sales by the end of the decade. This goal represents an increase from the previous target of 55% set in February 2023. By focusing on electrification, Nissan aims to enhance its market position and capture a larger share of the growing EV market.
In response to intense competition in the EV segment, Nissan and domestic rival Honda Motor have discussed the possibility of forming a strategic partnership. The collaboration would involve working together on key components for EVs and exploring other areas of cooperation. By joining forces, Nissan and Honda aim to leverage their respective strengths and accelerate innovation in the rapidly evolving automotive industry. Collaborative efforts could lead to cost savings, improved efficiency, and a stronger market position for both companies.
Of the 30 new models slated for release in the next three years, Nissan plans to introduce 16 electrified vehicles. The company is committed to reducing the cost of the next generation of EVs by 30% to make them more competitively priced against traditional internal combustion engine models by 2030. By lowering production costs and optimizing efficiency, Nissan aims to make electric vehicles more accessible to a broader range of customers. This cost-reduction strategy is essential for achieving higher sales and profitability targets in the long term.
In line with its updated business plan, Nissan is positioning itself for sustainable growth and long-term success in the global automotive market. The company’s focus on electrification, cost reduction, and strategic partnerships reflects its commitment to innovation and competitiveness. By launching new models, increasing electrified vehicle offerings, and expanding its global sales footprint, Nissan aims to strengthen its market position and drive profitability. As the automotive industry continues to evolve, Nissan’s strategic initiatives will play a vital role in shaping its future trajectory and ensuring its continued relevance in a rapidly changing market landscape.
Nissan Motor’s ambitious plans to launch 30 new models, increase global sales, and enhance profitability represent a significant step forward in its medium-term business strategy. By prioritizing electrification, cost reduction, and collaboration with strategic partners, Nissan aims to secure its position as a leading player in the global automotive market. As the company moves forward with its growth initiatives, its ability to innovate, adapt to market trends, and deliver value to customers will be crucial in achieving its long-term objectives. With a clear focus on sustainability, efficiency, and innovation, Nissan is well-positioned to capitalize on emerging opportunities and drive continued success in the dynamic and competitive automotive industry.