TOKYO — Nissan may bring production of its ultra-compact electric vehicles in-house, five people aware of the matter said, emboldened by the success of its Sakura model currently built by junior partner Mitsubishi Motors.
The automaker is considering moving production to its factory on the southern island of Kyushu within the business 12 months starting April 2028, said two of the people, who declined to be identified as the data was private.
Nissan and Mitsubishi denied the plan.
The Nissan Sakura was Japan’s best-selling vehicle within the passenger EV market in 2023 with a 42% share, showed Reuters calculations based on auto associations’ data. Sales have hit almost 64,000 vehicles since its introduction in mid-2022.
The performance of the Sakura — meaning “cherry blossom”, Japan’s national flower — is a shiny spot for Nissan whose EV efforts have been eclipsed by the likes of U.S. rival Tesla and Chinese leader BYD which, in China, have pushed the Japanese automaker out of the highest 10 brands.
Bringing production in-house would allow Nissan — an EV pioneer with its Leaf compact automobile — to spice up its profit margin which is below that of domestic peers Toyota Motor and Honda Motor.
The Sakura is sold only in Japan where it’s classed as a “kei automobile” — boxy vehicles which are smaller and fewer powerful than regular cars, primarily made for the domestic market.
It’s manufactured at Mitsubishi’s Mizushima plant in western Japan. Nissan will proceed to depend on the plant for production of its other kei cars, the people said.
Nissan expects kei EV sales to expand, the people said, as kei cars are relatively inexpensive in comparison with regular cars and their size makes them suitable for short-distance trips.
By bringing light EV production in-house, it hopes to “raise production efficiency and reduce costs”, one among the people said.
Nissan and Mitsubishi will proceed to handle the planning and development of kei EVs through 50-50 three way partnership NMKV, the person said.
Nissan’s Kyushu plant has an annual production capability of 500,000 vehicles. The automaker expects to make use of about 80% of that capability in the present business 12 months, one among the people said.
Nissan will free capability for kei EVs by shifting production of its North America-bound Rogue SUV to a different a part of the positioning, the person said.
This Article First Appeared At www.autoblog.com
