Nissan Bets On Sales Of Electric Vehicles -- WSJ
March 24 2018 - 3:02AM
Dow Jones News
By Sean McLain
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (March 24, 2018).
YOKOHAMA, Japan -- Nissan Motor Co. aims to sharply increase its
electric vehicle sales over the next five years, leaning on the
expected explosion of sales of battery-powered vehicles in
China.
In an ambitious bet on future demand, the Japanese auto maker
said Friday that it aims to sell one million battery-powered
vehicles per annum through the financial year ending March 2023.
Nissan's sales target includes both pure electric vehicles -- like
its popular Leaf, which sold some 73,000 units in 2017 -- and new
e-Power hybrid gasoline-electric system.
"We see the tipping point in the next decade, when EVs become
cost competitive to conventional vehicles," said Philippe Klein,
Nissan's chief planning officer, using an abbreviation for electric
vehicles. Many car companies project that by the mid-2020s, the
price of the lithium-ion batteries that power electric vehicles
will fall far enough that they and those powered by gasoline can be
sold at the same price.
Nissan has bet boldly on electric vehicles before, only to be
disappointed. Its alliance with Renault SA aimed to sell a
cumulative 1.5 million electric vehicles by 2016. But together,
they only sold around half a million by the end of 2017.
Nissan will lean heavily on hybrids to meet its new goal.
Vehicles equipped with the e-Power system will account for the
majority of battery-powered vehicle sales by the 2023 target, Mr.
Klein said.
The e-Power system has proven successful in Japan, and Nissan
plans to roll out more cars equipped with the system around the
world.
It differs from similar systems sold by Toyota Motor Corp. and
others in that the vehicle is driven solely by electric motors. A
small gasoline engine is used solely to recharge the onboard
batteries, extending the range of the car.
To reach its new electric sales goal, Japan's second-largest car
maker is looking at growth outside the U.S. -- traditionally its
source of sales volume and profit.
Nissan expects that up to 40% of its sales in China, Europe and
Japan will be comprised of battery-powered vehicles by March 2023.
In the U.S. -- where electric vehicle sales are around 1% of the
car market -- Nissan hopes that 30% of its customers buy such
vehicles over the same period.
Nissan will also roll out eight new electric vehicles by March
2023, starting this year with a new battery-powered sedan intended
for the China market.
The company will follow up in China next year with an
entry-level electric vehicle and two battery-powered models for its
local brand, Venucia.
In other markets, Nissan says it will sell an electric crossover
sport-utility vehicle starting in the early 2020s. The company will
also aim to boost sales of its ProPilot autonomous driving system,
adding it to 20 models in the next five years.
The company currently offers ProPilot on its latest Leaf, and,
in the U.S., on its popular Rogue crossover sport-utility
vehicle.
"For the Rogue in the U.S., at the moment, we have limited the
offer to the higher grade for simply manufacturing capacity
reasons," said Mr. Klein. He expects that capacity to increase
rapidly in the future.
Write to Sean McLain at sean.mclain@wsj.com
(END) Dow Jones Newswires
March 24, 2018 02:47 ET (06:47 GMT)
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