Nissan to setup in-house ultra-compact EV factory by 2028

Nissan is preparing to set up its production factory for ultra-compact electric vehicles (EV) in Japan somewhere in 2028 says media report.

The car company is taking this step after the success of its Sakura model. It is currently built with partner Mitsubishi Motors, a Tokyo-based automobile manufacturer.

The company is now looking to transfer the production in-house through a factory in the southern island of Kyushu starting April 2028, told sources to Japan Times.

This plant can produce 500,000 vehicles per year and Nissan has plans to use 80 percent of this capacity by business through 2024.

Nissan’s Sakura model garnered good sales last year with a 42% market share in Japan and it has about 64,000 units shipment since it was launched in 2022.

Resuming vehicle production at home could allow the automaker to increase its profit margin and compete against giants including Toyota Motor and Honda Motor.

(Image Credit: Nissan)

The Sakura model is a small-sized boxy car known as a “kei car” and designed especially for domestic consumers. The current production of the car is conducted at Mitsubishi’s Mizushima plant in western Japan.

However, Nissan is likely to continue this partnership and produce cars through Mistubishi. The company on the other hand wants to expand production on a scale with its manufacturing line for kei cars.

In terms of production, kei cars are less expensive than regular cars. It is quite popular for home use cases and for people who prefer short-distance travel.

The company is also considering to relocate some production of North American Rogue SUVs to the home ground.