Japanese carmaker Nissan has set its sights on cutting the cost of producing battery electric vehicles by close to one-third by the end of the decade. The move is designed to help the company compete against Chinese manufacturers. The automaker sold a whopping 3.4 million cars worldwide in 2023 and is looking to boost its vehicle sales by an additional million units over the next three years.
Nissan’s plan to reduce electric vehicle production costs will involve launching 30 new models through 2026, with 16 of those being electric cars. If Nissan’s plan is successful, electric cars will account for 40% of its total vehicle sales by 2026 and up to 60% by the end of the decade, putting it on track to fully electrifying its vehicle lineup.
To cut vehicle production costs by 30% by the year 2030, Nissan will leverage next-gen modular manufacturing techniques and novel battery innovations while also group sourcing raw materials. Much like Nissan, several other automakers in Japan, Europe and the United States are keen on reducing electric vehicle manufacturing prices amid increasingly stiff competition from Chinese players.
Electric vehicle prices have been significantly higher than internal combustion engine (ICE) cars since the beginning of the EV industry, mostly due to high production costs. As EV components such as batteries are incredibly expensive to source and produce, most manufacturers pass these costs onto their consumers, resulting in much higher prices for EVs compared to similar ICE cars.
However, China’s government has spent the past several years providing billions of dollars’ worth of subsidies to local automakers, allowing the companies to minimize their production costs and sell EVs at much lower price points. These automakers have begun exporting their cheap electric cars to overseas markets, such as Europe, and are putting significant pressure on local carmakers to also cut prices just to remain competitive.
According to the EU Commission, Chinese electric cars tend to be at least 20% cheaper than their European-made counterparts, making it extremely difficult for European automakers to attract and retain customers. With Chinese automakers facing increased scrutiny in the European market due to their lower prices, these EV manufacturers could consider entering other markets such as Japan, where they still don’t have much concentration.
Nissan became one of the earliest adopters of EV technology when it debuted the Nissan Leaf more than a decade ago, but Chinese counterparts such as Li Auto and BYD have surpassed it in the EV segment. To remain competitive in the face of increased Chinese competition, Nissan will work to reduce EV production costs in many ways. This includes leveraging the Nissan Intelligent Factory concept in many of its production plants to reduce production time by up to one-fifth by relying on robots.
If Nissan succeeds in cutting the cost of producing its EVs, electric vehicle startups such as Rivian Automotive Inc. (NASDAQ: RIVN) will have stiffer competition to contend with in the industry, making the struggle for prominence in the space even harder.
About GreenCarStocks
GreenCarStocks (“GCS”) is a specialized communications platform with a focus on electric vehicles (“EVs”) and the green energy sector. It is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, GCS is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, GCS brings its clients unparalleled recognition and brand awareness. GCS is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from GreenCarStocks, text “Green” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.GreenCarStocks.com
Please see full terms of use and disclaimers on the GreenCarStocks website applicable to all content provided by GCS, wherever published or re-published: https://www.GreenCarStocks.com/Disclaimer
GreenCarStocks
Los Angeles, CA
www.GreenCarStocks.com
310.299.1717 Office
[email protected]
GreenCarStocks is powered by IBN
