Nissan plans to sell an additional million vehicles over the next three years and reduce the cost of electric vehicles

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plans to sell an additional million vehicles over the next three years and reduce electric vehicle production costs by 30% by 2030, the Japanese carmaker announced on Monday.

In its latest medium-term marketing strategy, Nissan also announced that it’s going to launch 30 latest models by fiscal yr 2026, 16 of which can be electrified. Its goal is to achieve cost parity between electric vehicles and combustion engines by 2030.

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“This plan will enable us to further and accelerate our value and competitiveness,” Nissan president and CEO Makoto Uchida said in an announcement.

“In the face of extreme market volatility, Nissan is taking decisive action with a new plan to ensure sustainable growth and profitability.”

The automaker also said it goals to achieve an operating profit margin of over 6% by the end of fiscal 2026, in addition to “long-term profitable growth.”

“A lot of uncertainty”

The Nissan Ariya electric automotive is on display during the 2020 Beijing International Automotive Exhibition (Auto China 2020) at the China International Exhibition Center on September 27, 2020 in Beijing, China.

Vcg | Visual China Group | Getty Images

To solve this problem, Nissan plans to develop electric vehicles in “families”, integrate powertrains and give attention to battery innovation, aiming to reduce next-generation fleet costs by 30% compared to the current Ariya crossover model.

“To do this, we need to work closely with our vendors to work in advance on the application pipeline at the scale we need to deliver,” Uchida told CNBC’s “Squawk Box Europe.”

“Otherwise, I believe we’ll face quite a bit of uncertainty for the next five years. The most vital thing can be scalability and how we achieve it, because Nissan’s partnership can be one of the key things.”

Nissan Plan: Arc

Under a two-part plan called The Arc, Nissan said it would seek to deliver volume growth through a “tailored regional strategy” and prepare for an accelerated shift to electric vehicles by balancing its lineup between electric and combustion vehicles, increasing volumes in core markets and financial discipline.

These efforts will be supported by “smart partnerships, increased competitiveness of electric vehicles, differentiated innovation and latest revenue streams.”

Nissan says the strategy could generate potential revenue of 2.5 trillion yen ($16 billion) in latest business opportunities by fiscal yr 2030.

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