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Nissan raises global EV targets; to boost U.S. input

Published 02/26/2023, 09:19 PM
Updated 02/27/2023, 10:31 AM
© Reuters. FILE PHOTO: A Nissan logo is seen in a vehicle during the press day at the Los Angeles Auto Show in Los Angeles, California, U.S. November 17, 2022. REUTERS/Mike Blake
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TOKYO (Reuters) -Nissan Motor Co Ltd on Monday raised its electrified car sales goals and said it would boost power train production in the United States, as it looks to catch up in a segment dominated by newer automakers such as Tesla (NASDAQ:TSLA) Inc.

The Japanese automaker was a pioneer in electric vehicles (EVs) with its all-battery-powered Leaf but has struggled alongside many legacy automakers in the face of increasing competition from nimbler new entrants.

Nissan (OTC:NSANY) now aims to have electrified vehicles - which include its advanced hybrid e-power cars - make up over 55% of global sales by fiscal 2030, up from a previous goal of 50%, it said.

The EV mix will increase to 44% by fiscal 2026 from an earlier target of 40%, Nissan said.

The automaker plans 27 new electrified vehicles by that year, 19 of which will be all-battery EVs, it said in a statement. That compared with its previous plan of 23 electrified vehicles including 15 all-battery EVs.

In addition to EV production at its Smyrna, Tennessee plant, Nissan plans to build electric power trains at its Decherd plant in the same state to help it meet requirements for the Inflation Reduction Act, Chief Operating Officer Ashwani Gupta said on Monday.

© Reuters. FILE PHOTO: A Nissan logo is seen in a vehicle during the press day at the Los Angeles Auto Show in Los Angeles, California, U.S. November 17, 2022. REUTERS/Mike Blake

The company is looking into adding a second source of batteries produced in the U.S., he said, which would contribute towards existing supply from Envision AESC. Nissan is confident it will be in compliance with the Act due to the localisation of battery production starting from 2026.

"IRA is challenging, but on the other side, it's an opportunity to accelerate the competitive electrification," he said in an online briefing.

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