TOKYO — Nissan might deliver manufacturing of its ultra-compact electrical automobiles in-house, 5 folks acquainted with the matter mentioned, emboldened by the success of its Sakura mannequin at present constructed by junior accomplice Mitsubishi Motors.
The automaker is contemplating transferring manufacturing to its manufacturing unit on the southern island of Kyushu within the enterprise yr beginning April 2028, mentioned two of the folks, who declined to be recognized as the data was non-public.
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 based mostly on auto associations’ information. 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 automobile — 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 automobile” — 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 folks mentioned.
Nissan expects kei EV gross sales to develop, the folks mentioned, as kei automobiles are comparatively cheap in comparison with common automobiles and their measurement makes them appropriate for short-distance journeys.
By bringing gentle EV manufacturing in-house, it hopes to “increase manufacturing effectivity and cut back prices”, one of many folks mentioned.
Nissan and Mitsubishi will proceed to deal with the planning and growth of kei EVs via 50-50 three way partnership NMKV, the individual 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 yr, one of many folks 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 individual mentioned.