Source: Gasgoo Author: Xing Yun
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According to foreign media reports, five sources revealed that Japanese automaker Nissan may start producing its own subcompact electric vehicles after the company’s Sakura model (produced by alliance partner Mitsubishi Motors) has been successful.
Two people familiar with the matter, who did not want to be identified, said Nissan is considering starting production of such models at its plant on the southern Japanese island of Kyushu from April 2028. Both Nissan and Mitsubishi have denied the claims.
Foreign media calculated based on data from the Japan Automobile Manufacturers Association that in 2023, Nissan Sakura will become the best-selling model in the Japanese passenger electric vehicle market with a market share of 42%. Since its release in mid-2022, its sales have reached nearly 64,000 units. Given that U.S. rival Tesla and China’s leading electric car maker BYD have knocked Nissan out of China’s top ten brands, the performance of the Sakura model is very impressive.
Image source: Nissan
Nissan is a pioneer in the electric car industry, but its Leaf small car has lower profit margins than models from Toyota and Honda. Nissan’s own production of subcompact electric vehicles will help boost its profit margins.
Sakura is classified as a “K car” in Japan, which is a model that is smaller and less powerful than ordinary cars. The car is only sold in Japan. Sakura is currently produced at Mitsubishi’s Mizushima plant in western Japan. Sources said Nissan will continue to rely on the plant to produce other models.
According to sources, Nissan expects sales of electric K cars to continue to increase because such models are priced lower than ordinary cars and their size is ideal for short-distance travel. By producing such cars itself, Nissan hopes to “increase production efficiency and reduce costs,” one source said.
The source also said that Nissan and Mitsubishi will continue to be responsible for the planning and development of the electric K car through the joint venture NMKV, which each holds a 50% stake.
Nissan’s Kyushu plant has an annual production capacity of 500,000 vehicles. Another source said Nissan expects the plant’s capacity utilization rate to be around 80% this year.
