Nissan plans to develop 16 new electric models and build a million more cars in three years

Nissan CEO Makoto Uchida said he wants to strengthen Nissan’s position in Latin America, Southeast Asia and India with existing partners Renault and Mitsubishi Motors

Nissan chief executive Makoto Uchida, said the carmaker must be 'flexible' in its approach.

Nissan is targeting an additional one million vehicle sales within three years as the Japanese carmaker seeks to regain market momentum and boost profitability.

The goal, unveiled as part of the carmaker’s new three-year plan, is to achieve an operating profit margin of at least 6% in that period by introducing dozens of new models — including more cost-effective electric cars — and forging partnerships, the Yokohama-based company said. 

“We can’t succeed if we keep doing things the same way,” Makoto Uchida, Nissan’s chief executive, said at a news conference at its development centre in Atsugi, near Yokohama. 

The carmaker is planning to introduce 30 new models over the next three years, of which 16 will be electric vehicles. Nissan also lowered its annual sales target for the second time last month to 3.55 million units from 3.7 million — and four million originally — for the financial year ending this month. 

The carmaker, which has seen a steep sales drop in China, cited intensifying competition and a logistics disruption, which it described as temporary. Even so, it’s forecasting higher operating profit during the period, thanks to cost-cutting measures.

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In the current uncertain global car market “we have to change our ways to compete with companies like BYD", Mr  Uchida said. Nissan, he added, must be “flexible” in its approach.

Last week, Mr Uchida and Honda Motor president Toshihiro Mibe announced a partnership to develop electric vehicle technology. The rivals, which initially signed a memorandum of understanding, said they will collaborate on core technology for battery-based electric vehicles, including software. 

“We both understand a sense of urgency” in their competition with new global players, Mr Uchida said. 

During the briefing, Mr Uchida said he wants to strengthen Nissan’s position in Latin America, Southeast Asia and India with existing partners Renault and Mitsubishi Motors. Behind this push is intensifying competition from China, where BYD and other electric car manufacturers are building and selling electric vehicles at more affordable prices. 

Meanwhile, BYD announced one of the most aggressive rounds of discounting seen in China’s bruising price war. It is currently discounting almost every electric and hybrid model. 

Bloomberg