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TOKYO: Nissan Motor Co will target an additional 1 million vehicle sales within three years as the Japanese carmaker seeks to regain momentum and boost profitability.
The goal, unveiled on Monday as part of the automaker’s new mid-term plan, is to achieve an operating profit margin of at least 6% in that time, by introducing dozens of new models — including more cost-effective EVs — and by forging partnerships, the Yokohama-based company said.
Nissan lowered its annual sales target for the second time last month to 3.55 million units from 3.7 million — and 4 million originally — for the fiscal year ending this month.
The carmaker, which has seen a steep sales drop in China, cited intensifying competition and a logistics disruption, which it described as temporary. Even so, it’s forecasting higher operating profit during the period, thanks to cost cutting measures.
“Faced with extreme market volatility, Nissan is taking decisive actions guided by the new plan to ensure sustainable growth and profitability,” Makoto Uchida, Nissan’s CEO, said.
Longer term, Nissan said it plans to add ¥2.5 trillion (US$16.5 billion) in fresh revenue through “new business ventures” by fiscal year 2030. The carmaker is planning to introduce 30 new models over the next three years, of which 16 will be electrified, it said.
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Nissan is also seeking to reduce the cost of next-generation EVs by 30%, and aim for cost parity between electric and combustion-engine vehicles also by fiscal 2030.
