Nissan Motor Co., Ltd. has just rolled out its latest business strategy, The Arc, to boost value and enhance competitiveness. This comprehensive plan bridges the company’s previous Nissan NEXT business transformation plan (2020-2023) to its ambitious long-term vision, Nissan Ambition 2030. The Arc ensures sustainable growth and profitability in volatile market conditions.
Key Objectives of The Arc Business Plan
The Arc business plan is divided into two main phases: mid-term goals for fiscal years 2024 through 2026 and mid-long-term actions extending to 2030. The plan focuses on several strategic areas:
Broad-Based Product Offensive: Nissan aims to launch 30 new models by fiscal year 2026, including 16 electrified vehicles and 14 internal combustion engine (ICE) models.
Increased Electrification: The company plans to enhance its electric vehicle (EV) competitiveness by reducing the cost of next-generation EVs by 30% and achieving cost parity between EVs and ICE vehicles by 2030.
New Approaches to Engineering and Manufacturing: Nissan will adopt innovative technologies and methodologies to streamline production and improve efficiency.
Strategic Partnerships: The company will leverage alliances with Renault and Mitsubishi Motors and explore new partnerships in key markets such as Japan and the U.S.
Financial Discipline: Nissan aims to maintain a stable CAPEX and R&D investment ratio, ensuring positive free cash flow and a healthy net cash level of 1 trillion yen (US $6,381 Million) throughout the Arc plan period.
Electric Vehicle's Expansion
A significant focus of The Arc’s business plan is the expansion and enhancement of Nissan’s electric vehicle offerings. Key initiatives include:
Cost Reduction: Nissan plans to reduce the cost of next-generation electric vehicles by 30% through grouped “family” development, with production starting in fiscal year 2027.
New Launches: The company will launch 16 new electrified models by fiscal year 2026, contributing to 34 electrified models by 2030. Which includes new EVs such as the next-generation Nissan LEAF and an electric replacement for the Nissan Micra in Europe.
Market-Specific Strategies: In Europe, over 40% of Nissan’s sales will be battery electric vehicles (BEVs) by 2026, with 75% of sales being electrified models. In Oceania, additional new electric vehicles will be introduced, and in Africa, Nissan plans to offer a 100% electric vehicle to South African consumers by the end of The Arc plan.
Battery Development: Nissan will invest over 400 billion yen (US $2,552 million) in battery capacity to develop and source batteries with partners to achieve 135 gigawatt hours of global capacity.
Regional Growth
Americas: Increase sales by 330,000 units by 2026 compared to 2023, and invest 200 million USD in an integrated customer experience in the U.S. Launch seven all-new models in the U.S. and Canada, refresh 78% of the U.S. passenger vehicle lineup, and introduce e-POWER and plug-in hybrid models.
China: Refresh 73% of Nissan-brand models, launch eight new-energy vehicles (NEVs), and target 1 million unit sales by 2026. Start vehicle exports in 2025, aiming for 100,000 units.
Japan: Refresh 80% of the passenger model lineup, launch five all-new models, achieve a 70% electrified level in the passenger vehicle lineup, and increase sales by 90,000 units to 600,000 units by 2026.
Africa, Middle East, India, Europe, and Oceania: Increase sales by 300,000 units by 2026 compared to 2023. Launch six all-new models in Europe, achieving a 40% EV passenger vehicle sales mix, and introduce new models and strategies in other regions.
New Vehicle Intelligence Technologies
The Arc plan includes accelerating the evolution of vehicle intelligence technologies, such as the next-generation ProPILOT driver-assistance system, aiming to realize door-to-door autonomous driving technology.
Strategic Partnerships and Financial Discipline
Nissan will leverage strategic partnerships to stay competitive and offer a global portfolio of products and technology. The company will maintain financial discipline with a stable CAPEX and R&D investment ratio, ensuring positive free cash flow and targeting a total shareholder return of over 30%.
Nissan's Commitment to the Future
Nissan President and CEO Makoto Uchida emphasized the importance of The Arc plan, stating, “Under this comprehensive plan, we will enhance Nissan’s competitiveness and achieve sustainable profitability. Nissan is confident it has what it takes to properly execute this plan, providing us with the firm foundation we need to bridge to our Nissan Ambition 2030 vision.”
The Arc business plan sets a clear roadmap for Nissan’s future, focusing on growth, adaptability, competitiveness, and a sustainable, electrified future.
