TOKYO — Nissan could carry manufacturing of its ultra-compact electrical automobiles in-house, 5 individuals acquainted with the matter mentioned, emboldened by the success of its Sakura mannequin presently constructed by junior accomplice Mitsubishi Motors.
The automaker is contemplating shifting manufacturing to its manufacturing facility on the southern island of Kyushu within the enterprise 12 months beginning April 2028, mentioned two of the individuals, who declined to be recognized as the knowledge was personal.
Nissan and Mitsubishi denied the plan.
The Nissan Sakura was Japan’s best-selling car within the passenger EV market in 2023 with a 42% share, confirmed Reuters calculations primarily based on auto associations’ knowledge. Gross sales have hit nearly 64,000 automobiles since its introduction in mid-2022.
The efficiency of the Sakura — which means “cherry blossom”, Japan’s nationwide flower — is a vivid spot for Nissan whose EV efforts have been eclipsed by the likes of U.S. rival Tesla and Chinese language chief BYD which, in China, have pushed the Japanese automaker out of the highest 10 manufacturers.
Bringing manufacturing in-house would enable Nissan — an EV pioneer with its Leaf compact automotive — to spice up its revenue margin which is beneath that of home friends Toyota Motor and Honda Motor.
The Sakura is bought solely in Japan the place it’s classed as a “kei automotive” — boxy automobiles which are smaller and fewer highly effective than common automobiles, primarily made for the home market.
It’s manufactured at Mitsubishi’s Mizushima plant in western Japan. Nissan will proceed to depend on the plant for manufacturing of its different kei automobiles, the individuals mentioned.
Nissan expects kei EV gross sales to increase, the individuals mentioned, as kei automobiles are comparatively cheap in comparison with common automobiles and their measurement makes them appropriate for short-distance journeys.
By bringing mild EV manufacturing in-house, it hopes to “elevate manufacturing effectivity and scale back prices”, one of many individuals mentioned.
Nissan and Mitsubishi will proceed to deal with the planning and growth of kei EVs by way of 50-50 three way partnership NMKV, the particular person mentioned.
Nissan’s Kyushu plant has an annual manufacturing capability of 500,000 automobiles. The automaker expects to make use of about 80% of that capability within the present enterprise 12 months, one of many individuals mentioned.
Nissan will free capability for kei EVs by shifting manufacturing of its North America-bound Rogue SUV to a different a part of the positioning, the particular person mentioned.