Nissan Plans to Bring Production of Ultra-Compact Electric Vehicles In-House
Nissan is considering bringing the production of its ultra-compact electric vehicles in-house, according to five sources familiar with the matter. The decision comes as the automaker has seen success with its Sakura model, which is currently produced by its junior partner Mitsubishi Motors. The move would involve moving production to Nissan’s factory on the southern island of Kyushu in the business year starting April 2028.
The Success of the Nissan Sakura Model
The Nissan Sakura has been a standout performer for the company, becoming Japan’s best-selling vehicle in the passenger EV market in 2023, with a 42% market share. Since its launch in mid-2022, sales of the Sakura have reached almost 64,000 vehicles. The success of the Sakura has been a positive development for Nissan, whose EV efforts have been overshadowed by competitors like Tesla and BYD in China.
The Benefits of Bringing Production In-House
Bringing the production of ultra-compact electric vehicles in-house would allow Nissan to boost its profit margins, which currently lag behind those of domestic rivals like Toyota and Honda. The move would also enable Nissan to enhance production efficiency and reduce costs, as it looks to capitalize on the growing demand for kei cars in the Japanese market.
Plans for Kei EV Sales Expansion
Nissan expects sales of kei EVs to expand in the coming years, as these vehicles are relatively inexpensive compared to regular cars and are well-suited for short-distance trips. By bringing light EV production in-house, Nissan aims to ramp up production efficiency and meet the rising demand for electric vehicles in the Japanese market.
Continued Collaboration with Mitsubishi
Despite plans to bring production in-house, Nissan will continue to collaborate with Mitsubishi through their 50-50 joint venture, NMKV, for the planning and development of kei EVs. This partnership ensures that Nissan can leverage Mitsubishi’s expertise in manufacturing while taking control of the production process.