Nissan announces plans to reach 4.5 million annual sales by 2026, focusing on electrified vehicles. Despite the problems in China, where sales have fallen, Nissan is looking to regain ground by strengthening its electric car offering. However, experts warn of potential risks, raising the possibility of a withdrawal similar to Mitsubishi’s.

Accelerated tempo

Nissan recently unveiled its road map to accelerate the pace of the global automotive industry. The main goal is to sell about 4.5 million cars every year from 2026, which is a significant increase over current figures. To achieve these goals, Nissan is mainly counting on expanding its offering, particularly with a wider range of electrified vehicles. Over the next three years, the manufacturer plans to release 30 new models, 16 of which will be electrified. The goal is to reach a 40% share of electrified vehicles in global sales within three years and up to 60% by 2030. With that in mind, Nissan is also keen reduce production costs of your electric cars by 30% compared to the Nissan Ariya. The manufacturer aims to achieve cost parity for thermal and electric vehicles by 2030, introducing “families” of electric vehicles to reduce production costs and model development time. This goal is even more important because the competition in the electricity market is very fierce. Nissan has to struggle to succeed, especially in China, where domestic manufacturers do not hesitate to cut prices to capture market share. Foreign manufacturers, such as Nissan, try as they can, with more or less success, to adhere to this price policy imposed on them.

The importance of Nissan’s position in China

Nissan recognizes the importance of regaining its position in China, the second largest market after the United States. In 2023, its sales in this country fell by 24.1% by volume, mainly due to increased competition from local manufacturers, as explained earlier. To reverse this trend, Nissan aims to reach 1 million sales in China within the next three years, increasing the supply of electrified vehicles in the local market, which may require significant adjustments to production capacity in the country. Shohei Yamazaki, head of Nissan for the Chinese market, emphasized that all options are now being explored with the group’s Chinese partners to develop an effective recovery strategy. This is also the same strategy that several manufacturers have chosen. They know very well that it will be very difficult to equalize prices, and therefore prefer to establish partnerships with Chinese manufacturers than to try to compete in a very difficult market. As Luca de Meo explained in his letter addressed to the leaders, the price difference between the Chinese and European models is about 7,000 euros (for the equivalent segment), traditional manufacturers need to urgently reduce costs and revise the prices of their models at the risk of eternal dominance by Chinese manufacturers. This price difference is even more pronounced in China, where electric vehicle prices are much lower than in Europe. Kenichiro Wada, founding president of the Japan Research Institute of Electrification, emphasizes that if Nissan fails to quickly reverse the trend in China, exit from the Chinese market may become an inevitable option, as Mitsubishi has already done…