Nissan aims to sell 1 million electrified vehicles a year by 2022

Plans to sell 1 million ProPILOT-equipped vehicles per year

2018/04/06

Summary

Nissan IMx
Nissan IMx exhibited at the Tokyo Motor Show 2017

In March 2018 Nissan Motor Co., Ltd. announced that it aims to sell 1 million electrified vehicles (100% pure electric models (EVs) and those with e-POWER powertrains) annually by 2022 as part of its midterm plan "Nissan M.O.V.E. to 2022". Nissan will also continue to expand the adoption of its e-POWER technology to account for a majority of those 1 million units.

As part of its strategy for autonomous driving systems, Nissan announced plans to deploy its ProPILOT technology in 20 models in 20 markets by 2022. The company expects to sell 1 million ProPILOT-equipped vehicles a year by 2022.

In addition, Nissan announced that it will be expanding connectivity and mobility services for all new Nissan, INFINITI, and Datsun cars sold in key markets by 2022, enabled by its launch of the Alliance Connected Cloud system.

Related reports:
Toyota's Electrified Vehicle Strategy: Sales of 5.5 million units and 1 million ZEV vehicles by 2030 (Apr. 2018)
Nissan: Connected strategy in the age of autonomous cars (Jan. 2018)
Nissan's EV Strategy: Introduce EVs in all major vehicle segments by 2022 (Sep. 2017)

 

 



Promotion of electrification

Nissan announced that it aims to sell 1 million electrified vehicles (100% EV models and those with e-POWER powertrains) annually by 2022 as part of its midterm plan Nissan M.O.V.E. to 2022. Models equipped with its e-POWER technology are expected to account for a majority of those 1 million units.

Nissan's "electrified vehicles" represent, when translated literally from its original Japanese announcements, "electrically driven vehicles namely motor driven vehicles".

The e-POWER system currently available on the Nissan Note and Serena vehicles that are now being sold in Japan includes a gasoline engine dedicated to charging the battery, effectively making the vehicle a series hybrid vehicle. Vehicles equipped with e-POWER offer powerful acceleration, quiet operation, excellent fuel efficiency (37.2km/L in the Note 2WD version), and superior driving performance. More than 129,000 Note e-POWER models were sold in Japan in the first year the vehicle was released, with more than two thirds of Note customers selecting the e-POWER option model. In 2017, Nissan sold 139,000 units of the Note (including the gasoline-powered e-POWER version), representing a y/y increase of 36%, making the Note the second most popular vehicle in Japan, second only to the Toyota Prius with 160,000 registered vehicles.
Nissan is not excluding consideration of FCVs and PHVs in its plans for electrified vehicles, but due to their high cost, the automaker intends to focus primarily on expanding proliferation of EVs and vehicles equipped with e-POWER throughout its new midterm plan until 2022.

Nissan's plan involves the expanded adoption of its e-POWER technology. Expansion of electrified vehicles is also targeted for markets such as China, Southeast Asia, and South America.

In addition, many OEMs recently have been announcing their sales targets and expectations in quick succession for electrified vehicles such as EVs and PHVs. However, it seems that these OEM are struggling to predict customer acceptance of electrified vehicles. Nissan's midterm plan announcement clearly indicates that the company is committed to the expansion of electrified vehicles using a combination of pure EV and the e-POWER series hybrid version equipped with a gasoline engine to charge the battery, what Nissan refers to as "electrified vehicles". This direction seems to suggest that the automaker's new electrification strategy will highly leverage the effective use of its powerful proprietary e-POWER technology.



Nissan has ambitious plans to expand the introduction of EVs in the Chinese market

Regarding EVs, Nissan announced the following plan:

  • Develop eight new EV models based on the success of the new Nissan Leaf
  • Aggressively introduce EVs in China under different brands
  • Introduce an electric mini-vehicle in Japan
  • Introduce a global crossover EV, inspired by the Nissan IMx concept vehicle
  • Electrify new INFINITI models to be introduced from fiscal year 2021

In the Chinese market, Nissan will launch a new C-segment EV derived from Nissan Leaf technology this year. Plans also call for the introduction of an affordable EV in China developed by the Alliance joint venture eGT New Energy Automotive, based on an A-segment SUV platform. In addition, Nissan is also planning to introduce two additional EV derivatives (of existing gasoline-powered models) for the Venucia brand.

Nissan plans to introduce more than 40 new models to the Chinese market by 2022, half of which will be electrified models (EV and e-POWER). Total unit sales are expected to increase by more than 1 million units from 1.52 million units in 2017 to 2.6 million in 2022 (as announced in February 2018).

INFINITI will accelerate the electrification trend by introducing new models being either pure electric vehicles or utilizing e-POWER technology from fiscal year 2021. By 2025, INFINITI expects electrified vehicles to comprise 50% of its global sales.

The table below shows by region the percentage of electrified vehicles that Nissan is planning, including EV and e-POWER models. In Japan and Europe, where market acceptance is the highest, sales of electrified vehicles are expected to reach 40% by 2022 and 50% by 2025.



Nissan's forecast: The percentage of electrified vehicles by region

Japan Europe China The US
-2022 40% 40% 30% -
-2025 50% 50% 35-40% 20-30%

Source: Nissan

新型リーフ セレナのe-Power搭載車
The new Leaf exhibited at the Tokyo Motor Show 2017 The Serena equipped with e-POWER exhibited at the Tokyo Motor Show 2017


Deployment of autonomous driving technologies

As part of its strategy for autonomous driving systems, Nissan announced plans to deploy its ProPILOT technology in 20 models in 20 markets by 2022. The company expects to sell 1 million ProPILOT-equipped vehicles a year by 2022.

Nissan also plan to introduce enhanced autonomous driving capability with ProPILOT to automate multi-lane driving on highways in Japan within one year.

In September 2017 the Renault-Nissan-Mitsubishi Alliance announced the following plan concerning its deployment of automated vehicles. The announcement confirmed its plans to introduce highly autonomous drive vehicles for use on highways in 2018.


According to the Renault-Nissan-Mitsubishi alliance plan announced in September 2017:

2018: Highly autonomous drive vehicles for use on highways (requires continuous monitoring of the environment by the driver)
2020: Highly autonomous drive vehicles for use in cities (requires continuous monitoring of the environment by the driver)
2020: Highly autonomous drive vehicles for use on highways (occasional human intervention may be required)
2022: First fully autonomous drive vehicles (no human driver intervention necessary)

As announced in February 2018, with further relaxation of government regulations, Nissan plans to introduce Level 1 and Level 2 autonomous driving technologies in China starting in 2019.

 



Connected cars and mobility services

Nissan's objective is to launch its Alliance Connected Cloud to offer connectivity for all new models of the Nissan, INFINITI and Datsun brands sold in key markets by the year 2022. The Connected Cloud system also will support infotainment services. The Connected Cloud will also allow for the three Alliance companies to integrate the data management of all of their connected vehicles. An additional benefit of the Alliance Connected Cloud is that all of the Alliance companies will be able to use the system as a single communication mechanism to facilitate over-the-air updates for all Alliance connected vehicles.

The Alliance Connected Cloud system provides a foundation to enable the expansion of mobility services. This includes dispatch services using driverless vehicles, for which Nissan has partnered with DeNA. The partners conducted field testing of a new robo-vehicle ride-hailing service named Easy Ride using unmanned vehicles in early March, 2018. Nissan is aiming to provide full-scale commercial services to customers starting in the early 2020s.

 



Nissan's new midterm plan Nissan M.O.V.E. to 2022: The development of new mobility services

In November 2017, Nissan announced its new six-year midterm plan "Nissan M.O.V.E. to 2022" for the period 2017 to 2022.

The acronym M.O.V.E. stands for Mobility, Operational Excellence, Value to Customers, and Electrification. Through the sharing of technology among the Renault-Nissan-Mitsubishi Alliance member companies, the Alliance will use its Nissan Intelligent Mobility approach to focus on providing its customers the three core elements of electrification, autonomous driving, and connectivity, as well as new mobility services.

By the end of the six-year plan, under the proportional consolidation of its Chinese joint venture, Nissan aims to grow annual revenues from JPY 12.8 trillion (FY 2016) to JPY 16.5 trillion yen, and generate a cumulative JPY 2.5 trillion of automotive free cash flow, with an 8% operating margin.

Nissan M.O.V.E. to 2022 Lead the Evolution

Source: Nissan


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Keywords
Nissan, EV, e-POWER, ProPILOT, Alliance Connected Cloud, Nissan M.O.V.E. to 2022

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