Nissan planning to cut 30% cost of next-gen EVs

Nissan is planning to cut 30% cost of next-gen electric vehicles (EVs) through this decade said CEO Makoto Uchida on Monday.

The Japanese automaker wants to increase over 1 million vehicle sales over the next three years. That includes the company’s aim to reduce 30% of the production cost for electric vehicles by 2030.

He explained that the company has a launch plan for 16 new EVs by 2026 and wants to reach EVs and combustion engine costs parity by 2030.

Since last year, the EV market has been gradually seeing downstream in consumer interest. One of the core reasons for this downtime is related to the high prices of the vehicles.

Uchida mentioned that the price pressure in the EV sector has come “much, much earlier than we thought”.

Nissan is said to be developing a range of new EVs with new powertrains as well as battery solutions that focus on production costs. These combined could reduce the cost of next-gen EV by 30% compared to the current-gen Ariya crossover.

Nissan’s chief revealed that it is working with the supply chain industry to scale production and find new grounds for innovation. Aside from EVs, Nissan will also release new combustion engine models that will ensure the company’s sustainable growth and profitability.

The hybrid business model is now endorsed by many of the top automakers as they scale back from their initial plans of expanding EV models.

Nissan has recently signed a memorandum of understanding (MoU) with Honda to research and develop in the field of EVs and smart vehicle technologies.

The carmaker said on Monday that it’s targeting an operating profit margin of more than 6% by the end of fiscal 2026 and long-term profitable growth. The latest announcement also comes amid massive competition in the Chinese market.

(sources – CNBC)