- By the end of 2026, Nissan aims to sell an additional 1 million units compared to 2023 and achieve an operating profit margin of 6% or more.
- Launch of 30 new models by 2026, 16 of which will be electric
- Renew 60% of internal combustion engine (ICE) passenger cars by 2026
- Reduce the cost of next-generation EVs by 30%, achieve vehicle price parity between EVs and ICEs by 2030, and strengthen the competitiveness of EVs
- Next-generation EV will significantly reduce costs by grouping family development, aiming for vehicle production from 2027
- Expanding strategic partnerships into technology, product portfolio, and software services
- Aiming for a total shareholder return rate of 30% or more through dividends and share buybacks
- Through new business initiatives, additional revenue of 2.5 trillion yen is expected by FY2030.
Yokohama, Japan: Nissan Motor Co., Ltd. today announced “The Arc,” a new business plan to increase value and strengthen competitiveness. The plan calls for a broad product offensive, increasing electrification, new approaches to engineering and manufacturing, introducing new technologies, and leveraging strategic partnerships to increase global sales and improve profitability. focused.
This plan is positioned as a bridge between Nissan NEXT, our business transformation plan from fiscal 2020 to fiscal 2023, and our long-term vision, Nissan Ambition 2030. The new plan is divided into medium-term goals from FY2024 to FY2026 and medium- to long-term initiatives to be implemented by 2030.
Makoto Uchida, President and Chief Executive Officer of Nissan Motor Co., Ltd., said, “The Ark plan charts a path for our company's future. This plan will enable us to drive value and competitiveness even faster, ensuring sustainable growth and profitability in the face of extreme market volatility. We are taking decisive action based on our new plan.”
Under the two-part plan, Nissan will first take steps to ensure sales growth through regionally tailored strategies, a balanced electrification/ICE product portfolio, and increased sales in key markets. Prepare for an accelerated transition to EVs, supported by financial discipline. Through these initiatives, Nissan aims to increase annual sales by 1 million units and increase operating profit margin to over 6% by the end of fiscal 2026. This enables the transition to EV and long-term profitable growth supported by smart partnerships, enhanced EV competitiveness, differentiated innovation and new revenue streams. Nissan expects to generate 2.5 trillion yen in revenue from new business opportunities by fiscal 2030.
Balanced product portfolio
Nissan plans to launch 30 new models over the next three years, 16 of which will be electrified models and 14 of which will be ICE models, in order to meet diversifying customer needs in markets where the pace of electrification is different. . Nissan plans to release a total of 34 electrified models covering all segments from 2024 to 2030, with the electrified model mix expected to account for 40% worldwide by 2026 and reach 60% by the end of 2020. It is expected to increase to %. .
Ensure market growth through customized regional strategies
Nissan's commitments in key regions and markets through fiscal year 2026 (unless otherwise noted) include:
Americas:
- Increase regional sales by 330,000 units (2026 vs. 2023) and invest $200 million in unified customer experience in the US.
- US and Canada: Seven all-new models launched
- U.S.: Renovated 78% of Nissan brand passenger car lineup and introduced e-POWER and plug-in hybrid models
China:
- 73% of Nissan brand models have been renewed and eight new energy vehicles (NEVs), including four Nissan brand models, have been launched.
- Aiming for sales of 1 million units, an increase of 200,000 units, in 2026
- Vehicle exports will begin in 2025. Aiming for 100,000 units level
- Continue to optimize production capacity in collaboration with local partners
Japan:
- 80% of passenger car model lineup renewed, launching 5 completely new models
- Achieved 70% electrification rate for passenger car lineup
- Aiming for 600,000 units in 2026, an increase of 90,000 units (compared to 2023)
Africa, Middle East, India, Europe, Oceania:
- Wide area sales increase by 300,000 units (compared to FY2026 and FY2023)
- Europe: Launch of 6 all-new models. Achieved 40% EV passenger car sales ratio
- Middle East: Five all-new SUVs launched
- India: Introducing 3 new models and becoming an export base at the 100,000-unit level
- Oceania: Launch of 1-ton pickup vehicle and introduction of C crossover EV
- Africa: Launch of two new SUVs and expand A-segment ICE vehicles
EV competitiveness
The product offensive will be supported by new development and manufacturing approaches aimed at making EVs more affordable and profitable. Nissan will reduce the cost of its next-generation EV by 30% (compared to the current model Ariya crossover) by leveraging family EV development, powertrain integration, next-generation modular manufacturing, group sourcing and battery innovation and aims to achieve cost savings. -Achieve equivalence between EV and ICE models by 2030.
In the area of family development alone, costs for follow-on vehicles developed based on the family's flagship vehicle will be reduced by 50%, trim component variations will be reduced by 70%, and development lead times will be reduced by four months. The adoption of modular production will shorten vehicle production lines and reduce production time per vehicle by 20%.
Under the Arc Plan, the Nissan Intelligent Factory Concept will be introduced at plants in Japan and overseas, starting this fiscal year at the Oppama Plant and Nissan Motor Kyushu Plant in Japan, the Sunderland Plant in the United Kingdom, and the Canton and Smyrna Plants in the United States. . Meanwhile, the EV36Zero production approach is scheduled to expand from Sunderland in the UK to plants including Canton, Decherd and Smyrna in the US, and Tochigi and Kyushu in Japan from 2025 to 2028.
new science and technology
This plan includes proposals to accelerate the evolution of vehicle intelligence technology, such as ProPILOT, a next-generation driver assistance system that will enable door-to-door autonomous driving technology from on-highway to off-highway, on private property, and in parking lots.
Nissan will offer enhanced NCM lithium-ion batteries, LFP batteries, and solid-state batteries to offer a variety of EVs that meet the needs of various customers. Nissan has significantly enhanced the NCM lithium-ion battery, reducing fast charging time by 50% and increasing energy density by 50% compared to the Ariya. The company will develop, produce and sell LFP batteries in Japan, which can reduce costs by 30% compared to the light vehicle “Sakura EV.” A new EV equipped with enhanced NCM lithium-ion batteries, LFP batteries, and all-solid-state batteries is scheduled to be released in 2028.
strategic partnership
Nissan will leverage strategic partnerships to maintain its competitive edge and offer a world-class portfolio of products and technologies. Nissan will continue to leverage its alliances with Renault and Mitsubishi Motors in Europe, Latin America, ASEAN and India. In China, Nissan will make maximum use of its local assets to meet needs both inside and outside China. The batteries will be developed and sourced with partners and will deliver 135 gigawatt-hours of capacity globally.
Financial discipline for resilient and profitable performance
Underpinning this plan is strong financial discipline, allowing for a stable capital and R&D investment ratio of 7% to 8% of net revenue, excluding investments in battery capacity. Additionally, Nissan plans to invest more than 400 billion yen in battery capacity. Meanwhile, investment in electrification will gradually increase, reaching over 70% in FY2026.
The management of these investments is aimed at benefiting all stakeholders, with Nissan maintaining positive free cash flow both before the M&A and after the electrification investment. This is to ensure a total shareholder return of 30% or more. Nissan aims to maintain net cash at a healthy level of 1 trillion yen throughout the period of the Ark plan.
Uchida added, “Based on this comprehensive plan, we will strengthen Nissan's competitiveness and achieve sustainable profitability.” “We are confident that Nissan has what it takes to successfully execute this plan, and this will give us the solid foundation we need to bridge Nissan's Ambition 2030 Vision.”
*Nissan Motor Co., Ltd.'s fiscal year runs from April 1st to March 31st.
