Nissan has taken a definitive stand by announcing it will no longer invest in new gas or diesel-powered engines. This decision underscores Nissan’s commitment to an all-electric future, aligning with global trends towards sustainability and reduced carbon emissions.
While many automotive giants like Toyota, Mazda, and Subaru are enhancing the efficiency of their internal combustion engines (ICE), Nissan is making a different bet. According to Electrek, Nissan has confirmed it will not allocate funds for future ICE engine development, reaffirming its goal to transition entirely to electric vehicles in Europe by 2030.
Francois Bailly, Nissan’s Senior Vice President and Chief Planning Officer for the AMIEO (Africa, Middle East, India, Europe, and Oceania) region, highlighted this commitment during a media address at Nissan’s Sunderland plant in the UK. He emphasized the significance of the e-Power technology as a bridge towards full electrification, indicating that while the shift will be market-dependent, the ultimate direction is clear: no more new ICE powertrains.
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As part of its strategic shift, Nissan is set to launch several upgraded electric vehicles (EVs), including the next-generation LEAF. By 2030, the company aims for EVs to make up 60% of its total sales. In the United States, Nissan plans to refresh 78% of its lineup with new e-Power and plug-in hybrid electric vehicles (PHEVs). In Europe, six new EVs are expected to hit the market by 2026, targeting a 40% share of electric car sales.
Nissan anticipates significant cost reductions for its next-generation EVs, projecting a 30% decrease due to innovations and improved production processes. This strategy aligns with the broader industry goal of making EVs more affordable and accessible.
Nissan’s journey in the EV market began with the LEAF in 2010, the world’s first mass-produced electric car. Despite initial success, the LEAF faced intense competition from Tesla’s Model 3. In response, Nissan introduced the Ariya, an electric SUV, which, despite a slow start, has gained traction thanks to the “Intelligent Factory” initiative launched at Nissan’s Tochigi plant in 2021. This initiative aims to reduce costs and boost EV production efficiency.
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By April 2024, Nissan had sold 5,640 Ariyas in the US, 5,187 in Europe, and 601 in Japan. The Ariya is stepping in to fill the gap as LEAF sales decline, positioning Nissan firmly in the competitive EV market.
While Nissan focuses on an all-electric future, other Japanese automakers like Toyota, Mazda, and Subaru are exploring next-generation hybrid engines. These companies believe that internal combustion engines can be made more efficient and are working on nearly carbon-free fuels.
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Toyota is developing three inline-four BEVs, Mazda has a dedicated rotary team, and Subaru is working on a new hybrid setup based on its boxer engine. This divergence in strategies highlights the ongoing debate within the automotive industry about the balance between profitability and environmental responsibility.
Nissan recognizes that the transition from ICEs will vary by region. Bailly pointed out that emissions standards are still lenient in some areas, such as Africa, where Euro 2 standards are still acceptable. Therefore, while Nissan is committed to an electric future, it will continue to adapt its product lineup to meet regional demands.
This approach allows Nissan to maintain a presence in various global markets while gradually phasing out ICEs. By balancing immediate market conditions with its long-term vision, Nissan aims to meet global automotive requirements efficiently without disrupting its overall strategy.
