Nissan Motor Co. is accelerating efforts to electrify its car models in Europe and Japan, as a growing list of nations impose deadlines to phase out gasoline-powered cars and competition mounts from domestic and overseas rivals.
(Bloomberg) — Nissan Motor Co. is accelerating efforts to electrify its car models in Europe and Japan, as a growing list of nations impose deadlines to phase out gasoline-powered cars and competition mounts from domestic and overseas rivals.
The Japanese carmaker now expects 98% of its sales in Europe to be hybrid or fully electric in fiscal 2026, up from its prior target of 75% set in November 2021, the Yokohama-based company said in a statement Monday. For its home market, it anticipates 58% electrified vehicle sales, up from 55%.
Nissan, which released the Leaf — the world’s first mass-produced battery electric vehicle — in 2010, is now seeking to catch up with Tesla Inc. in the US and Volkswagen AG in Europe. The Japanese auto manufacturer has committed ¥2 trillion ($14.7 billion) to electrify more of its lineup and make battery-powered cars a key driver of future growth.
Read more: Nissan Unveils $18 Billion Long-Term Electric-Vehicle Strategy
Ashwani Gupta, chief operating officer, said in a briefing that Nissan will introduce 27 electrified models, including 19 EVs, by fiscal 2030, up from the previously planned 23 models and 15 EVs.
As a result, 55% of Nissan’s sales, including for the Infiniti brand, will be from electrified vehicles, according to the carmaker. Electrified vehicles made up 13% of global sales in the third quarter of 2022.
Nissan will fully localize US EV production and comply by 2026 with Inflation Reduction Act subsidy requirements, including the decarbonization of its Tennessee plant, Gupta said. The law, which passed in the US last year, provides generous incentives for selling EVs but has stringent requirements on manufacturing and supply-chain sourcing. Nissan is targeting 40% of sales to be EV-only by fiscal 2030.
“The IRA is giving us the opportunity to speed up electrification in the United States,” Gupta said. “We have completed the path to comply with the IRA.”
Read more: Nissan CEO Wants Grace Period for Biden Rules on EV Subsidies
Nissan cut its electrification target in China to 35% from 40% in fiscal 2026. In China’s market for battery-powered EVs, Gupta said local brands are “leading the way,” and as such Nissan will release an EV SUV in 2024.
“This is the new way Nissan is going to work in China, for China,” the COO said.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.