Nissan Unveils New Business Strategy: What's In It For India?

In India, Nissan's regional strategy encompasses launching three new models.

Nissan Motor Co., Ltd. has unveiled "The Arc," its latest business strategy aimed at driving value and bolstering competitiveness. With a focus on broadening its product portfolio, increasing electrification, embracing new engineering and manufacturing methodologies, adopting advanced technologies, and leveraging strategic partnerships, Nissan aims to enhance its global unit sales and profitability. In India, Nissan's regional strategy encompasses launching three new models and positioning the country as a hub for exports, targeting a volume of 100,000 units. Additionally, Nissan aims to increase electrification levels in its passenger vehicle line-up to 70 per cent and achieve a 40 per cent EV sales mix in Europe.

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The Arc serves as a transitional framework between Nissan's ongoing business transformation plan, Nissan NEXT (running from fiscal 2020 to 2023), and its long-term vision, Nissan Ambition 2030. The strategy outlines mid-term objectives for fiscal years 2024 to 2026 and extends to mid-to-long-term actions through 2030.

Nissan President and Chief Executive Officer Makoto Uchida said, “The Arc plan shows our path to the future. It illustrates our continuous progression and ability to navigate changing market conditions. This plan will enable us to go further and faster in driving value and competitiveness. Faced with extreme market volatility, Nissan is taking decisive actions guided by the new plan to ensure sustainable growth and profitability.”

The first phase of The Arc involves initiatives to stimulate volume growth through region-specific strategies and expedite the transition to electric vehicles (EVs). Nissan aims to achieve an annual sales increase of 1 million units and raise its operating profit margin to over 6 per cent by the conclusion of fiscal year 2026. Subsequently, the plan is poised to facilitate a smooth transition to EVs and facilitate long-term profitable growth, supported by strategic partnerships, enhanced EV competitiveness, innovative solutions, and new revenue streams. By fiscal year 2030, Nissan envisions potential revenues of 2.5 trillion yen from emerging business opportunities.

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A key aspect of The Arc's strategy is the development of a balanced product portfolio. Nissan plans to introduce 30 new models over the next three years, including 16 electrified and 14 internal combustion engine (ICE) variants, catering to diverse market preferences and electrification rates. By fiscal year 2026, electrified vehicles are expected to constitute 40 per cent of Nissan's global model mix, rising to 60 per cent by the end of the decade.

To enhance EV competitiveness, Nissan plans to leverage innovative development and manufacturing methodologies, aiming to reduce the cost of next-generation EVs by 30 per cent and achieve cost parity between EVs and ICE models by fiscal year 2030. The company also intends to expand its strategic partnerships to facilitate global product offerings and technology advancements.

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The company plans to invest over 400 billion yen in battery capacity, with electrification investments projected to exceed 70 per cent by fiscal year 2026. Nissan aims to maintain positive free cash flow and total shareholder return of over 30 per cent throughout the plan period.