Although several automakers are pushing back plans to launch affordable EVs, Nissan is moving quicker to bring them to market.
“We thought the process was step by step, but it has accelerated a lot faster.” Nissan’s CEO Makoto Uchida admitted that the EV market was “moving faster” than expected at the Japan Mobility Show this week.
Nissan’s leader referred to the low-cost electric vehicles from Chinese automakers like BYD and SAIC’s MG. Uchida called the arrival of affordable EVs from China a “wake-up call.”
In response, Nissan is “having discussions on price.” Uchida said the automaker is “looking at affordable pricing for EVs across the world,” calling it a key priority going forward.
Nissan is revamping development plans to keep up in the rapidly evolving auto market, according to Autocar. The company’s leader clarified the distinction between Nissan introducing affordable EVs at a good value rather than simply producing smaller, cheaper cars.
Nissan moves to take advantage of affordable EVs
The comments come in stark contrast to industry rivals. Earlier this week, Honda said it was ditching plans to build affordable electric models with General Motors.
Honda’s CEO, Toshihiro Mibe, cited a “changing business environment” as the reason. GM and Honda expanded their partnership in April 2020 with plans to launch low-cost EVs using advanced Ultium battery tech. However, that will no longer be the case.
GM also announced it would delay production of several EVs, including the Equinox, Silverado RST, and GMC Sierra electric trucks.
Meanwhile, Ford said on its Q3 earnings Thursday it would push back around $12 billion in planned EV manufacturing investments.
Ford’s CEO Jim Farley stressed on the company’s earnings call, “A great product is not enough in the EV business anymore.” He added, “We have to be totally competitive on cost.”
Farley explained that “Tesla actually gave us a gift with a laser-focus on cost and scaling the Model Y.” He went on to say Tesla “set the standard” as it advances on its second and third-gen models.
Uchida didn’t offer a timeframe for when we can expect affordable Nissan EVs but said the company “had a plan.”
Nissan’s leader said China is giving automakers like Nissan “a wake-up call.” In response, Nissan is ramping up its ability to lower EV costs.
Meanwhile, Nissan’s Sakura is the top-selling EV in Japan. After launching last year, the electric minicar beat out Tesla to earn the top spot. One of the biggest reasons – it’s incredibly affordable and functional. The Saura cost around ¥2 million ($13,300), including government incentives.
The automaker unveiled a new “X-in1” powertrain that will reduce development and manufacturing costs by 2026, according to Nissan. Uchida said the automaker also overhauled management to maximize efficiency by region.
Electrek’s Take
Despite many automakers proclaiming the EV market has cooled, Nissan’s comments highlight an important point.
Affordable electric vehicles with functional range and modern tech are selling. Consumers don’t want to overpay for a model that doesn’t offer value for the price.
Ford said Thursday that “buyers are unwilling to pay a premium for their EVs over gas or hybrids,” which is pressuring prices and profitability.
Meanwhile, affordable models like Tesla’s Model Y and BYD’s SEAL continue taking market share in key markets. Tesla’s Model Y is already the best-selling car in Europe and is on its way to becoming the top-selling vehicle (electric or gas) globally this year. It will be the first EV to accomplish the feat.
The point is – EVs are selling. Buyers are just going with brands that offer the best value. And right now, that’s Tesla and several Chinese brands.