Nissan Cuts New Leaf EV Production By Half Due To Battery Supply Issues

Nissan Motor has scaled back manufacturing plans for its redesigned Leaf electric vehicle (EV), cutting production targets by more than 50 per cent for the September through November period, according to a report by news agency Reuters quoting Nikkei business daily.

What Caused Production Cuts

The significant production cut stems from ongoing challenges in battery procurement, specifically lower-than-anticipated battery yields from a Nissan subsidiary, the business publication reported. The production shortfall hit manufacturing at Nissan's Tochigi facility in eastern Japan, which serves as the primary production hub for Leaf vehicles destined for both domestic Japanese and the US markets.

While the report did not disclose specific production figures, it indicated that monthly output at the Tochigi plant could be reduced by several thousand vehicles during the affected timeframe.

Company Committed To Year-End Launch

Despite the production challenges, Nissan maintains its commitment to launching the updated electric vehicle model before the year's conclusion. In response to the report, a company spokesperson declined to comment on what they characterized as "speculative reports," while affirming that the new model development "was progressing on schedule towards its planned launch."

Nissan's EV Strategy Faces Hurdles

The latest production setback is another obstacle for Nissan's electric vehicle ambitions. Once considered a pioneer in the mass-market EV segment following the original Leaf's 2010 debut, the Japanese manufacturer has struggled to maintain its competitive position in the rapidly evolving electric vehicle landscape.

This isn't the first time Nissan has encountered manufacturing difficulties with its electric vehicle lineup. In 2023, the company's Ariya electric crossover experienced similar production complications at the same Tochigi manufacturing facility, where advanced production line technology created unexpected operational challenges.

Nissan shares concluded Tuesday trading down 0.4 per cent ahead of the Nikkei report's publication, underperforming compared to the broader market's 0.3 per cent gain on the benchmark Nikkei index.

The automaker is positioning the refreshed Leaf model as a crucial component of its strategy to regain ground in the competitive electric vehicle market, where newer entrants and established competitors have gained significant market share in recent years.