Nissan Ups Its EV Game

Nissan plans to offer six electrical vehicle nameplates that comply with U.S. local sourcing rules for EV tax credits by 2026, the company announced in a press conference.

The automaker will meet the Inflation Reduction Act’s requirements for the tax credits by complying with the rules of final assembly, content from foreign entities of concern, and the localization of battery components and minerals, Chief Operations Officer Ashwani Gupta told reporters.

The automaker also reported plans to consolidate platforms and drivetrains to make its EVs more competitive.

By 2026, the company’s EV lineup will include a next-generation Leaf hatchback, the Ariya crossover, and four new Nissan/Infiniti manufactured at its Canton, Miss. plant. The latter models, which include two sedans and two crossovers, will qualify for the full $7,500 EV federal tax credit.

“We at Nissan are confident that we will be complying for IRA with localization starting in CY 2026,” Gupta said at the briefing.

Plans to meet localization requirements include manufacturing electric powertrains locally and possibly revamping the company’s Decherd, Tenn. engine plant to make EV powertrains. Currently, the automaker imports electric powertrains from Japan for Leaf assembly in Smyrna, Tenn.

The automaker is also considering a second source for batteries in the U.S. Its current supplier, Envision AESC, makes batteries at the Smyrna factory complex.

According to Gupta, localizing mineral supply will present the biggest challenge.

“[Meeting] IRA is challenging, but on the other side, it’s an opportunity to accelerate the competitive electrification,” Gupta told reporters. “The question is how we manage that transition to full localization.”

Nissan forecasts over 44% of its U.S. sales will be electric by 2030, up from an earlier prediction of 40%. Last year, Nissan North America sold 729,350 vehicles in the U.S. but just 12,025 Leafs and 201 Ariyas.

The automaker also raised its outlook for EV sales in Europe, now expecting EVs to comprise 98% of its sales volume by 2030, compared to an earlier goal of 75%. The goal includes fully electric EVs, as well as hybrids.

Globally, Nissan aims to get 44% of its sales from EV or e-Power hybrid vehicles by 2030, up from the 40% announced in November 2021 under its Ambition 2030 plan.

Nissan will streamline engineering efforts by simplifying powertrain designs and consolidating platforms to cut cost and weight.

Gupta said the company will also speed its shift to software-defined vehicles. The automaker hopes to derive revenue from in-vehicle services in the U.S. and European markets from the fiscal year starting April 1.

“We need to shift from products only to products plus services,” Gupta said.

The automaker plans to expand the functionality and frequency of over-the-air vehicle software updates. Toward the end of the decade, updates will happen as often as every three months and cover such systems as autonomous driving and electrified powertrain settings.

By 2025, Gupta said, Nissan will design and code all software running key mobility technologies inside the car. Key systems covered will include Nissan’s ProPilot automated driving setup, energy management and mobility services.