Nissan Eyes In-House Production Of Ultra-Compact EV From 2028: Report
Portfolio Pulse from Shivani Kumaresan
Nissan Motor Co Ltd (OTC:NSANY) is considering moving the production of its ultra-compact electric vehicles, currently manufactured by Mitsubishi Motors Corp (OTC:MMTOF), in-house to its Kyushu factory starting April 2028. This strategic shift aims to improve production efficiency, reduce costs, and enhance profit margins in the kei electric vehicle segment, where Nissan lags behind Toyota Motor Corp (NYSE:TM) and Honda Motor Company, Ltd. (NYSE:HMC). The Nissan Sakura, a kei car, was the best-selling passenger EV in Japan in 2023 with a 42% market share.
March 08, 2024 | 4:56 pm
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NEGATIVE IMPACT
Mitsubishi Motors currently manufactures ultra-compact EVs for Nissan, which may impact its production role and partnership dynamics.
Nissan's decision to move ultra-compact EV production in-house could reduce Mitsubishi's role in manufacturing these vehicles, potentially impacting Mitsubishi's production volume and the dynamics of the partnership between the two companies.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Honda is a competitor in the kei EV market, where Nissan aims to improve its position.
Nissan's plans to enhance its kei EV market position could intensify competition for Honda. The direct impact on Honda's stock price is uncertain, as the market dynamics will depend on how Honda and other competitors respond to Nissan's strategic changes.
CONFIDENCE 65
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
Toyota is a competitor in the kei EV market, where Nissan aims to improve its position.
Nissan's strategic shift to improve its position in the kei EV market could increase competition for Toyota. However, the impact on Toyota's stock price is uncertain, as Toyota already has a strong position in this market and may respond with its own strategic moves.
CONFIDENCE 65
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
Nissan is planning to shift production of ultra-compact EVs in-house to improve efficiency and profit margins in the kei EV market.
Moving production in-house could lead to improved production efficiency and reduced costs for Nissan, potentially increasing its competitiveness and profit margins in the kei EV market. This strategic shift is likely to be viewed positively by investors, given the success of the Sakura model and the growing demand for kei electric vehicles.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90