Nissan Charts New Course For Sustainable Growth, Unveils ‘The Arc Business Plan

T Murrali
26 Mar 2024
11:01 AM
2 Min Read

The automaker aims to strengthen its product lineup with the introduction of 30 new models over the next three years, including 16 electrified and 14 internal combustion engine (ICE) vehicles.


Nissan

Nissan Motor Company has unveiled its ambitious new business plan, dubbed 'The Arc,' aimed at driving value and enhancing competitiveness across its global operations. The comprehensive strategy encompasses a range of initiatives focused on product innovation, electrification, engineering, manufacturing, technology adoption, and strategic partnerships to bolster global unit sales and improve profitability.

Positioned as a pivotal link between Nissan's previous business transformation plan, known as Nissan NEXT, and its long-term vision, Nissan Ambition 2030, 'The Arc' is designed to guide the company's trajectory over the next decade and beyond.

Makoto Uchida, President and Chief Executive Officer of Nissan, expressing confidence in the plan's ability to steer the company toward sustainable growth amidst evolving market dynamics, said, 'The Arc plan shows our path to the future. It illustrates our continuous progression and ability to navigate changing market conditions. This plan will enable us to go further and faster in driving value and competitiveness.'

Key Components

The key components of 'The Arc' include a robust product offensive, accelerated electrification efforts, strategic regional initiatives, advancements in EV competitiveness, adoption of new technologies, and financial discipline to ensure resilient performance.

Product Innovation, Electrification

The automaker aims to strengthen its product lineup with the introduction of 30 new models over the next three years, including 16 electrified and 14 internal combustion engine (ICE) vehicles. The company plans to launch a total of 34 electrified models by 2030, with electrified vehicles projected to account for 40% of global sales by 2026 and 60% by the end of the decade.

Regional Strategies

In key regions such as the Americas, China, Japan, and Europe, Nissa fiscal year 2026 and compared to fiscal year 2023) and invest 200 million USD in integrated customer experience in the U.S.

  • In the U.S. and Canada: Launch seven all-new models
  • In the U.S.: Refresh 78% of passenger vehicle line-up for Nissan brand and launch e-POWER and plug-in hybrid models

China:

  • Refresh 73% of Nissan-brand models and launch eight new-energy vehicles (NEVs), including four Nissan-branded models
  • Target 1-million-unit sales in fiscal year 2026, representing an increase of 200,000 units
  • Start vehicle exports in 2025; Aim for 100,000 unit level
  • Continue to optimize production capacity with local partners

Japan:

  • Refresh 80% of passenger model line-up, launching five all-new models
  • Achieve a 70% electrified level in passenger vehicle line-up
  • Increase sales by 90,000 units (compared to fiscal year 2023) to 600,000 units in fiscal year 2026
Nissan

Africa, Middle East, India, Europe and Oceania:

  • Increase across-region sales units by 300,000 units (in fiscal year 2026 and compared to fiscal year 2023)
  • In Europe: Launch six all-new models; achieve 40% EV passenger-vehicle sales mix
  • In the Middle East: Launch five all-new SUVs
  • In India: Launch three all-new models and become a hub for exports, at a level of 100,000 units
  • In Oceania: Launch a 1-ton pickup and introduce a C crossover EV
  • In Africa: Launch two all-new SUVs and expand A-segment ICE vehicle

The Japanese OEM aims to make electric vehicles more affordable and profitable through innovative development and manufacturing approaches. By leveraging modular manufacturing, group sourcing, and battery innovations, the company plans to reduce the cost of next-generation EVs by 30% and achieve cost parity with ICE models by 2030.

New Technologies, Strategic Partnerships

'The Arc' also encompasses initiatives to accelerate the development of vehicle intelligence technologies, enhance battery capabilities, and leverage strategic partnerships to drive global growth and innovation.

Underpinning the plan is a commitment to financial discipline, ensuring stable investment ratios and positive free cash flow while maintaining a healthy net cash position throughout the plan period.

Nissan is confident that 'The Arc' will not only enhance its competitiveness but also pave the way for sustainable profitability, laying a solid foundation for the realization of its long-term vision, Nissan Ambition 2030.

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