Nissan targets 1 million extra vehicle sales in next 3 years, aims to cut EV costs

Nissan is targeting an additional 1 million vehicle sales over the next three years and a 30% reduction in electric vehicle production costs by 2030, the Japanese carmaker announced Monday.

In a new medium-term business plan, Nissan also said it would launch 30 new models by fiscal year 2026, with 16 of these electrified. It’s aiming for EV and combustion engine costs to reach parity by 2030.

“This plan will enable us to go further and faster in driving value and competitiveness,” Nissan President and CEO Makoto Uchida said in a statement.

“Faced with extreme market volatility, Nissan is taking decisive actions guided by the new plan to ensure sustainable growth and profitability.”

The automaker also said it is targeting an operating profit margin of more than 6% by the end of fiscal 2026, as well as “long-term profitable growth.”

It comes as the hype around electric vehicles appears to have cooled a little recently, with major manufacturers including Ford Motor, General Motors, Mercedes-Benz and Volkswagen all scaling back or delaying EV plans amid cooling demand. Even sector giant Tesla is bracing for what CEO Elon Musk said in January “may be a notably lower” rate of growth.

Traditional Western auto powerhouses are also facing huge competitive challenge from China when it comes to electrification. The country boasts the world’s largest and most crowded EV market and its automakers are exerting significant downward pressure on prices.

Under the two-part plan dubbed The Arc, Nissan said it will aim to ensure volume growth through a “tailored regional strategy,” and prepare for an accelerated EV transition by balancing its portfolio between EV and combustion cars, growing volumes in major markets and financial discipline.

This will be supported by “smart partnerships, enhanced EV competitiveness, differentiated innovations and new revenue streams.”

Nissan said this strategy could yield potential revenues of 2.5 trillion yen ($16 billion) from new business opportunities by fiscal 2030.

This is a breaking news story and will be updated shortly.