- Nissan aims to sell an additional 1 million units compared to fiscal 2023 and achieve an operating profit margin of 6% or more by the end of fiscal 2026.
- 30 new models to be launched by fiscal 2026, 16 of which will be electrified
- Renew 60% of internal combustion engine (ICE) passenger vehicle models by FY2026
- Reduce the cost of next-generation EVs by 30% and make EVs and ICE vehicles cost-equivalent by FY2030, thereby strengthening the competitiveness of EVs
- The next generation of EVs will achieve significant cost reductions through “family” development, with vehicle production starting using this approach from fiscal year 2027.
- Strategic partnership expands to technology, product portfolio and software services
- Aim for a total shareholder return of 30% or more through dividends and share buybacks
- New businesses that could generate additional revenue of 2.5 trillion yen by fiscal 2030
Yokohama, Japan: Nissan Motor Co., Ltd. today unveiled “The Arc,” a new business plan to drive value and strengthen competitiveness. The plan focuses on a broad product offensive, accelerated electrification, new approaches to engineering and manufacturing, adoption of new technologies and leveraging strategic partnerships to grow global sales and improve profitability.
This plan is positioned as a bridge between the business restructuring plan “NISSAN NEXT” from fiscal 2020 to fiscal 2023 and the long-term vision “NISSAN AMBIENCE 2030,” and is divided into medium-term challenges from fiscal 2024 to fiscal 2026 and medium- to long-term measures up to 2030.
Nissan President and CEO Makoto Uchida said: “The ARK Plan charts the way for our future. It demonstrates our continued progress and ability to weather changing market conditions. This plan will enable us to move forward more quickly, further driving value and competitiveness. In the face of extreme market volatility, Nissan is taking decisive action under the new plan to ensure sustainable growth and profitability.”
The two-part plan will first customize regional strategies to grow sales volume and prepare to accelerate the transition to EVs, supported by a balanced product portfolio of EVs and internal combustion engines, growing sales in key markets and financial discipline. Through these efforts, Nissan aims to increase annual sales by 1 million units and raise operating margin to more than 6% by the end of fiscal year 2026. This paves the way for the second half of the plan, which aims to enable the transition to EVs and realize long-term, profitable growth, supported by smart partnerships, enhanced EV competitiveness, differentiated innovation and new revenue streams. Nissan sees JPY 2.5 trillion in revenue potential from new business opportunities by fiscal year 2030.
A balanced product portfolio
To meet diverse customer needs in markets with different paces of electrification, Nissan plans to launch 30 new vehicles over the next three years, of which 16 will be electrified and 14 will be internal combustion engine models. Nissan plans to launch a total of 34 electrified models covering all segments between fiscal 2024 and 2030, and expects the model mix of electrified vehicles to increase to 40% globally by fiscal 2026 and 60% by the end of the decade.
Ensure market growth with localized strategies
Nissan's actions through fiscal year 2026 in major regions and markets (unless otherwise noted) include:
Americas:
- Increase sales across the region by 330,000 units (FY2026 vs. FY2023) and invest $200 million in an integrated customer experience in the United States.
- US and Canada: Seven new models launched
- US: Nissan to revamp 78% of passenger vehicle lineup, launch e-POWER and plug-in hybrid models
China:
- The company will revamp 73% of its Nissan brand vehicles and launch eight new energy vehicles (NEVs), including four Nissan brand models.
- Aiming to increase sales by 200,000 units to 1 million units in fiscal 2026
- Automobile exports to begin in 2025, aiming for 100,000 units
- Continue to optimize production capacity through collaboration with local partners
Japan:
- Renewing 80% of passenger car model lineup, launching five new models
- Achieving 70% electrification of passenger vehicle lineup
- Increase sales volume by 90,000 units (compared to fiscal 2023) to 600,000 units in fiscal 2026
Africa, Middle East, India, Europe, Oceania:
- Increase sales volume across the region by 300,000 units (FY2026 vs. FY2023)
- Europe: Six new models launched, EVs account for 40% of passenger vehicle sales
- Middle East: Five new SUVs launched
- In India, the company will launch three new models and become an export base with a scale of 100,000 units.
- Oceania: Launch of 1-ton pickup truck and introduction of C crossover EV
- Africa: Launching two new SUV models and expanding A-segment ICE vehicles
Competitiveness of EVs
The product offensive will be underpinned by new development and manufacturing approaches aimed at making EVs more affordable and profitable. By developing EVs as a family and leveraging powertrain integration, next-generation modular manufacturing, group sourcing and battery innovation, Nissan aims to reduce the cost of its next-generation EVs by 30% (compared to the current-generation Ariya crossover) and achieve cost parity between EVs and ICE models by fiscal year 2030.
In the area of family development alone, subsequent vehicles developed based on the flagship vehicle of the family will see a 50% cost reduction, trim part variations will be reduced by 70%, and development lead times will be shortened by four months. By adopting modular manufacturing, vehicle production lines will be shortened, reducing production time per vehicle by 20%.
The ARK plan will see the Nissan Intelligent Factory concept introduced to more plants both at home and abroad, beginning at the Oppama and Nissan Motor Kyushu plants in Japan, the Sunderland plant in the UK, and the Canton and Smyrna plants in the US between fiscal years 2026 and 2030. Meanwhile, the EV36Zero production approach will be expanded from Sunderland in the UK to the Canton, Decherd and Smyrna plants in the US, and the Ibaraki and Kyushu plants in Japan between fiscal years 2025 and 2028.
New Science and Technology
The plan includes proposals to accelerate the evolution of vehicle intelligence technologies, such as the next-generation ProPILOT driver-assistance system, which will enable door-to-door autonomous driving technology from on-highway to off-highway, private property and parking lots.
Nissan will offer enhanced NCM lithium-ion, LFP and solid-state batteries to offer a diverse range of EVs to meet different customer needs. Nissan will significantly enhance its NCM lithium-ion batteries, reducing fast-charging times by 50% and improving energy density by 50% compared to the Ariya. LFP batteries developed and produced in Japan will deliver a 30% cost reduction compared to the Sakura EV minicar. New EVs equipped with enhanced NCM lithium-ion, LFP and solid-state batteries are scheduled to be launched in fiscal year 2028.
Strategic Partnership
Nissan will leverage strategic partnerships to stay competitive and offer a world-class product and technology portfolio. Nissan will continue to leverage its alliances with Renault and Mitsubishi Motors in Europe, Latin America, ASEAN and India. In China, it will maximize local assets to meet needs in China and beyond, and explore new partnerships in Japan and the U.S. Batteries will be developed and sourced in collaboration with partners, bringing the company's global capacity to 135 gigawatt hours.
Financial discipline for resilient and profitable performance
The basis of this plan is a strong financial discipline that will allow Nissan to maintain a stable capital expenditure and R&D investment ratio of 7% to 8% of net sales, excluding investment in battery capacity. Furthermore, Nissan plans to invest more than 400 billion yen in battery capacity. Meanwhile, investment in electrification will gradually increase and exceed 70% by fiscal year 2026.
By managing these investments, Nissan aims to benefit all stakeholders, and is maintaining positive free cash flow before M&A, even after electrification investments, to ensure total shareholder return of 30% or more. Nissan aims to maintain net cash at a healthy level of 1 trillion yen throughout the ARC Plan period.
“This comprehensive plan will strengthen Nissan's competitiveness and achieve sustainable profitability,” Uchida added. “I am confident that Nissan has the capabilities necessary to properly execute this plan, which will provide us with a solid foundation to realize our Nissan Ambition 2030 vision.”
*Nissan Motors' fiscal year runs from April 1st to March 31st of the following year.
