New powertrains to reduce hybrid costs by 30%: Nissan

BLOOMBERG

Nissan Motor Co. is developing new modular powertrains that will help streamline production and drive manufacturing costs for hybrid cars down by as much as 30%.
By enhancing the common parts that underpin a vehicle, the Yokohama-based automaker expects to be able to lower the cost of its hybrid cars to the same level as gasoline-powered cars by 2026, Senior Vice President Toshihiro Hirai said at a briefing.
Nissan unveiled blueprints for two new powertrains — one for its so-called E-power hybrids and another for its zero-emission vehicles. Both use similar technology that will help consolidate and localise production, points Nissan touched on late last month when it outlined its accelerated electrification strategy.
As carmakers globally rush headlong into electric vehicles, Japanese automakers, notably Toyota Motor Corp., say they’re taking a more nuanced approach, continuing to invest heavily in hybrids.
Their belief is that consumers won’t want to switch to electric cars overnight, preferring instead to wait until the technology develops and the cost of EVs comes down. There are also concerns about whether sufficient charging infrastructure for EVs will be in place.
Pure electric and hybrid cars accounted for about 52% of Nissan’s total sales in Japan during the second quarter of fiscal 2022. Although the bulk of that came from hybrids, it’s an improvement from just 12% in 2016. Nissan’s new powertrains will go into production as early as 2024, Hirai said.
Hirai also said that reliable, functioning batteries that don’t cost a fortune to produce or require dwindling rare Earth metals to create are still the missing linchpin for EVs. He added Nissan is committed to developing next-generation solid-state batteries. “The introduction of solid-state batteries is key,” he said. Nissan Speeds Up Electric Transition Plans Nissan Motor Co. is accelerating efforts to electrify its car models in Europe and Japan, as a growing list of nations impose deadlines to phase out gasoline-powered cars and competition mounts from domestic and overseas rivals.
The Japanese carmaker now expects 98% of its sales in Europe to be hybrid or fully electric in fiscal 2026, up from its prior target of 75% set in November 2021, the Yokohama-based company said in a statement. For its home market, it anticipates 58% electrified vehicle sales, up from as much as 55%.
Nissan, which released the Leaf — the world’s first mass-produced battery electric vehicle — in 2010, is now seeking to catch up with Tesla Inc. in the US and Volkswagen AG in Europe. The Japanese auto manufacturer has committed $14.7 billion to electrify more of its lineup and make battery-powered cars a key driver of future growth.
Ashwani Gupta, chief operating officer, said in a briefing that Nissan will introduce 27 electrified models, including 19 EVs, by fiscal 2030, up from the previously planned 23 models and 15 EVs.
As a result, 55% of Nissan’s sales, including for the Infiniti brand, will be from electrified vehicles, according to the carmaker. Electrified vehicles made up 13% of global sales in the third quarter of 2022.
Nissan will fully localize US EV production and comply by 2026 with Inflation Reduction Act subsidy requirements, including the decarbonisation of its Tennessee plant, Gupta said. The law, which passed in the US last year, provides generous incentives for selling EVs but has stringent requirements on manufacturing and supply-chain sourcing. Nissan is targeting 40% of sales to be EV-only by fiscal 2030.
“The IRA is giving us the opportunity to speed up electrification in the United States,” Gupta said. “We have completed the path to comply with the IRA.”
Nissan cut its electrification target in China to 35% from 40% in fiscal 2026. In China’s market for battery-powered EVs, Gupta said local brands are “leading the way,” and as such Nissan will release an EV SUV in 2024.