Japanese legacy automaker Nissan confirmed plans to accelerate the launch of its more affordable electric vehicles while other automakers are pushing back their electrification efforts due to waning demand, Electrek reports.
The Nissan Chief noted during the 2023 Japan Mobility Show that the electric vehicle industry was “moving faster” than expected.
“We thought the process was step by step, but it has accelerated a lot faster.”
Nissan CEO Makoto Uchida
Nissan accelerates electrification plan
Nissan CEO Makoto Uchida expressed his strong optimism towards the shift to electric vehicles. As part of its electrification strategy, the company is “looking at affordable pricing for EVs across the world.”
Mr. Uchida also emphasized that Nissan aims to launch more affordable EV models at a good value instead of just developing smaller and cheaper cars.
He also cited the cheaper EV models offered by Chinese automakers like BYD and MG, describing them as a “wake-up call.”
The move is apparently part of Nissan’s strategy to catch up in the highly competitive electric vehicle market.
Changing business environment
Despite the significant advancements in the EV industry, some challenges make it hard for the shift to sustain its progress. In effect, some automakers decided to cancel their plans to produce cheaper EVs.
For instance, Honda and General Motors decided to abandon their electric vehicle project that will develop low-cost models with Ultium architecture. According to Honda CEO Toshihiro Mibe, the change of plan is crucial due to the “changing business environment.”
GM also postponed its planned production of its Equinox, Silverado RST, and GMC Sierra electric trucks. Instead, it aims to revamp the Chevrolet Bolt instead of killing it after realizing its value.
Ford also announced plans to push back approximately $12 billion for its electric vehicle projects. In addition, it also disclosed that it will cut one of three shifts in its factory that produces the F-150 Lightning in the meantime.
“A great product is not enough in the EV business anymore. We have to be totally competitive on cost.”
Ford CEO Jim Farley
Nissan’s strategy to advance in the electric vehicle industry is indeed remarkable, demonstrating its commitment to offer customers more affordable models. Such efforts will significantly accelerate the world’s shift to more sustainable and e-mobility. However, Nissan has yet to announce the exact launch date for its new cheaper models.
