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Nissan (NSANY) to Launch 30 New Models Under The Arc Plan
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Nissan Motor Co., Ltd. (NSANY - Free Report) has announced the launch of 30 new models within the next three years, as part of its mid-term business plan, The Arc. Among these, 16 will be electrified and 14 will be internal combustion engine models.
Compared with 2023, the automaker targets to sell an additional one million units and reduce 30% of electric vehicle (EV) production cost by the end of 2026.
Per Makoto Uchida, president and CEO of Nissan, the plan will ensure sustainable growth and profitability amid extreme market volatility.
The company is also targeting an operating profit margin of more than 6% by the end of fiscal 2026.
Lower-than-expected EV demand has pushed major automakers like Ford, General Motors, Mercedes and Volkswagen to scale back or defer their respective EV plans. Even EV giant Tesla is expecting lower growth rate.
The automakers are also facing extreme competition from their China-based counterparts, who are exerting downward pressure on EV prices.
To tackle this challenge, Nissan aims to create a series of EVs grouped into families, streamline powertrain integration and prioritize advancements in battery technology. This strategic approach is devised to achieve a 30% reduction in costs for its next-gen fleet compared with the current Ariya crossover model.
Per Uchida, to lower costs, NSANY needs strong supplier partnerships to leverage early-stage app integration and scale effectively or else it is going to face a lot of uncertainty in the next five years.
Distinct Strategies for Different Regions
In the United States, Nissan aims to increase sales by 330,000 units in fiscal 2026 compared with its sales in 2023. It intends to invest $200 million in enhancing integrated customer experiences in the United States. In North America, the company will launch seven all-new models. In the United States, it aims to refresh 78% of its Nissan brand passenger vehicle lineup and introduce e-POWER and plug-in hybrid models.
The automaker plans to rejuvenate 73% of its brand models in China and launch eight new-energy vehicles in the region, including four Nissan-branded models. It targets to sell one million units in fiscal 2026. Nissan plans to start exporting 100,000 units from China in 2025. It plans to continually optimize production capacity through ongoing collaboration with local partners.
In Japan, the automaker plans to refresh 80% of the passenger model lineup and launch five all-new models. It strives to attain a 70% electrified level in the passenger vehicle lineup and increase sales to 600,000 units in fiscal 2026.
In Africa, the Middle East, India, Europe and Oceania, Nissan plans to increase 300,000 units across-region sales in fiscal 2026 compared with 2023. In Europe, it aims to launch six models and targets a 40% EV passenger-vehicle sales mix. In the Middle East, it aims to launch five all-new sports utility vehicles. In India, NSANY aims to introduce three entirely new models and establish itself as an export hub, targeting a volume of 100,000 units. In Oceania, a 1-ton pickup and a C crossover EV are slated for launch. In Africa, the plan involves introducing two new SUVs and broadening the A-segment ICE vehicle range.
New Battery Chemistries to Reduce Cost
Nissan is working on lithium nickel manganese cobalt batteries that offer 50% faster charging and 50% better energy density than current Ariya batteries. Additionally, lithium iron phosphate batteries aim to reduce costs by 30% compared with Sakura EV kei car batteries. Furthermore, solid-state batteries are in development, slated for launch between 2028 and 2029.
Strategic Collaborations to Stay Competitive
NSANY will sustain collaboration with Renault and Mitsubishi Motors across Europe, LATAM, ASEAN and India. In China, it will maximize local resources to serve both domestic and international demands. Additionally, it will seek fresh partnerships in Japan and the United States. Battery development and procurement will involve partners to achieve a global capacity of 135 gigawatt hours.
By fiscal 2030, Nissan anticipates a revenue potential of 2.5 trillion yen from emerging business opportunities.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings per share (EPS) suggests year-over-year growth of 4.3% and 67.7%, respectively. The EPS estimates for 2024 and 2025 have moved up by a penny and 12 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for TM’s 2024 sales and earnings suggests year-over-year growth of 10% and 73.6%, respectively. The EPS estimates for 2024 and 2025 have improved $1.30 and $1.01, respectively, in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings suggests year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimates for 2024 and 2025 have improved 67 cents and 71 cents, respectively, in the past 60 days.
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Nissan (NSANY) to Launch 30 New Models Under The Arc Plan
Nissan Motor Co., Ltd. (NSANY - Free Report) has announced the launch of 30 new models within the next three years, as part of its mid-term business plan, The Arc. Among these, 16 will be electrified and 14 will be internal combustion engine models.
Compared with 2023, the automaker targets to sell an additional one million units and reduce 30% of electric vehicle (EV) production cost by the end of 2026.
Per Makoto Uchida, president and CEO of Nissan, the plan will ensure sustainable growth and profitability amid extreme market volatility.
The company is also targeting an operating profit margin of more than 6% by the end of fiscal 2026.
Lower-than-expected EV demand has pushed major automakers like Ford, General Motors, Mercedes and Volkswagen to scale back or defer their respective EV plans. Even EV giant Tesla is expecting lower growth rate.
The automakers are also facing extreme competition from their China-based counterparts, who are exerting downward pressure on EV prices.
To tackle this challenge, Nissan aims to create a series of EVs grouped into families, streamline powertrain integration and prioritize advancements in battery technology. This strategic approach is devised to achieve a 30% reduction in costs for its next-gen fleet compared with the current Ariya crossover model.
Per Uchida, to lower costs, NSANY needs strong supplier partnerships to leverage early-stage app integration and scale effectively or else it is going to face a lot of uncertainty in the next five years.
Distinct Strategies for Different Regions
In the United States, Nissan aims to increase sales by 330,000 units in fiscal 2026 compared with its sales in 2023. It intends to invest $200 million in enhancing integrated customer experiences in the United States. In North America, the company will launch seven all-new models. In the United States, it aims to refresh 78% of its Nissan brand passenger vehicle lineup and introduce e-POWER and plug-in hybrid models.
The automaker plans to rejuvenate 73% of its brand models in China and launch eight new-energy vehicles in the region, including four Nissan-branded models. It targets to sell one million units in fiscal 2026. Nissan plans to start exporting 100,000 units from China in 2025. It plans to continually optimize production capacity through ongoing collaboration with local partners.
In Japan, the automaker plans to refresh 80% of the passenger model lineup and launch five all-new models. It strives to attain a 70% electrified level in the passenger vehicle lineup and increase sales to 600,000 units in fiscal 2026.
In Africa, the Middle East, India, Europe and Oceania, Nissan plans to increase 300,000 units across-region sales in fiscal 2026 compared with 2023. In Europe, it aims to launch six models and targets a 40% EV passenger-vehicle sales mix. In the Middle East, it aims to launch five all-new sports utility vehicles. In India, NSANY aims to introduce three entirely new models and establish itself as an export hub, targeting a volume of 100,000 units. In Oceania, a 1-ton pickup and a C crossover EV are slated for launch. In Africa, the plan involves introducing two new SUVs and broadening the A-segment ICE vehicle range.
New Battery Chemistries to Reduce Cost
Nissan is working on lithium nickel manganese cobalt batteries that offer 50% faster charging and 50% better energy density than current Ariya batteries. Additionally, lithium iron phosphate batteries aim to reduce costs by 30% compared with Sakura EV kei car batteries. Furthermore, solid-state batteries are in development, slated for launch between 2028 and 2029.
Strategic Collaborations to Stay Competitive
NSANY will sustain collaboration with Renault and Mitsubishi Motors across Europe, LATAM, ASEAN and India. In China, it will maximize local resources to serve both domestic and international demands. Additionally, it will seek fresh partnerships in Japan and the United States. Battery development and procurement will involve partners to achieve a global capacity of 135 gigawatt hours.
By fiscal 2030, Nissan anticipates a revenue potential of 2.5 trillion yen from emerging business opportunities.
Zacks Rank & Key Picks
NSANY currently carries a Zacks Rank #4 (Sell).
Some better-ranked players in the auto space are Modine Manufacturing Company (MOD - Free Report) , Toyota Motor Corporation (TM - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings per share (EPS) suggests year-over-year growth of 4.3% and 67.7%, respectively. The EPS estimates for 2024 and 2025 have moved up by a penny and 12 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for TM’s 2024 sales and earnings suggests year-over-year growth of 10% and 73.6%, respectively. The EPS estimates for 2024 and 2025 have improved $1.30 and $1.01, respectively, in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings suggests year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimates for 2024 and 2025 have improved 67 cents and 71 cents, respectively, in the past 60 days.