Japan’s Nissan is reportedly planning to bring the manufacturing of its ultra-compact EVs (electric vehicles) in-house from 2028. This move aims to bolster the company’s position in the rapidly expanding electric vehicle market and enhance its profit margins.

Currently, Nissan collaborates with Mitsubishi Motors to produce its range of ultra-compact EVs, models that have gained traction for their affordability and suitability for urban driving. However, with the anticipated in-house production, Nissan is looking to streamline its operations and harness more control over the quality and innovation of its electric vehicles.

This strategic pivot is not without precedent. Nissan has a long history with electric vehicles, dating back to the TAMA electric car developed in 1947. Over the decades, Nissan has introduced several influential EV models, including the LEAF and ARIYA, underscoring its commitment to electrification and sustainable transportation.

A Move to Kyushu

According to sources, the company is considering its Kyushu factory as the potential site for this in-house production initiative. This decision reflects Nissan’s ambition to compete more effectively with industry giants like Tesla and BYD, particularly in the burgeoning market for kei-sized electric vehicles in Japan and potentially globally.

Nissan’s exploration into in-house production of ultra-compact EVs also signals a broader industry trend towards vertical integration, where automakers seek to control more aspects of the supply chain and production process. This approach can offer advantages in terms of cost control, customization, and speed to market, crucial factors in the competitive EV landscape.

No Official Statements Yet

Despite these revelations, official statements from both Nissan and Mitsubishi deny any immediate plans to modify their current production partnership. The Nissan Sakura, however, continues to dominate the Japanese passenger EV market, claiming a 42% market share in 2023 and becoming the top-selling vehicle in its class, according to industry data.

Since its debut in mid-2022, the Sakura has achieved nearly 64,000 sales. Named after Japan’s cherished cherry blossoms, the Sakura symbolizes Nissan’s ambition to reclaim its footing in the competitive EV market, facing stiff competition from Tesla and China’s BYD.

Nissan’s plans to start producing ultra-compact EVs in-house reflects a broader effort to enhance profitability and competitiveness. Currently trailing behind domestic rivals Toyota Motor and Honda Motor in profit margins, Nissan seeks to bolster its standing in the EV sector and improve financial outcomes through this strategic shift.

Image Source: Investing.com South Africa