Nissan launches The Arc business plan to generate value and increase competitiveness and profitability

• Nissan targets additional sales of 1 million units compared to fiscal 2023 and an operating profit margin of more than 6% by the end of fiscal 2026
• 30 new models to be launched by fiscal 2026, of which 16 will be electrified
• 60% of internal combustion engine (ICE) passenger vehicle models will be upgraded by fiscal year 2026
• The competitiveness of EVs will be improved by reducing the cost of next-generation EVs by 30% and achieving EV and ICE vehicle cost parity by fiscal year 2030
• Significant reduction in next-generation electric vehicle costs to be achieved through clustered “family” development, with vehicle production under the approach starting in fiscal 2027
• Expanded strategic partnerships for technology, product portfolio and software services
• Dividends and buybacks to achieve a total shareholder return of more than 30%
• New business ventures to unlock potential 2.5 trillion yen in additional revenue by fiscal 2030

YOKOHAMA, Japan: Nissan Motor Co., Ltd today launched The Arc, its new business plan to generate value and strengthen competitiveness. The plan focuses on a broad product offensive, increased electrification, new approaches to engineering and production, adoption of new technologies and the use of strategic partnerships to increase global unit sales and improve profitability.

The plan is positioned as a bridge between Nissan NEXT’s business transformation plan, which runs from fiscal year 2020 through fiscal year 2023 and Nissan Ambition 2030, the company’s long-term vision. The new plan is divided into medium-term imperatives for fiscal years 2024 to 2026 and medium-long-term actions to be carried out until 2030.

Nissan President and CEO Makoto Uchida said: “The Arc plan shows our path to the future. It illustrates our continued progression and ability to navigate changing market conditions. This plan will allow us to go further and faster in promoting value and competitiveness. Faced with extreme market volatility, Nissan is taking decisive action guided by the new plan to ensure sustainable growth and profitability.”

Under the two-part plan, Nissan will first take steps to ensure volume growth through a tailored regional strategy and prepare for an accelerated transition to EVs, supported by a balanced portfolio of electrified/ICE products, growth of volume in the main markets and financial discipline. Through these initiatives, Nissan aims to increase annual sales by 1 million units and increase its operating profit margin to more than 6%, both by the end of fiscal 2026. This will pave the way for the second part of the plan that aims to enable the Transition to electric vehicles and achieve long-term profitable growth, supported by smart partnerships, greater competitiveness of electric vehicles, differentiated innovations and new revenue streams. By fiscal 2030, Nissan forecasts potential revenue of 2.5 trillion yen from new business opportunities.

Balanced product portfolio

Nissan plans to launch 30 new models over the next three years, of which 16 will be electrified and 14 will be ICE models, to meet the diverse needs of customers in markets where the pace of electrification differs. Nissan plans to launch a total of 34 electrified models from fiscal 2024 and 2030 to cover all segments, with the electrified vehicle model mix expected to represent 40% globally by fiscal 2026 and increase to 60 % by the end of the decade.

Ensure market growth through a personalized regional strategy

In key regions and markets, Nissan shares through fiscal 2026 (unless otherwise noted) include:

Americas:

• Increase cross-regional sales by 330,000 units (in fiscal 2026 and compared to fiscal 2023) and invest $200 million in integrated customer experience in the U.S.
• In the US and Canada: launch of seven all-new models
• In the US: update 78% of the Nissan brand passenger vehicle lineup and launch e-POWER and plug-in hybrid models

China:

• Upgrade 73% of Nissan brand models and launch eight new energy vehicles (NEVs), including four Nissan brand models
• Sales target of 1 million units in fiscal 2026, representing an increase of 200,000 units
• Start exporting vehicles in 2025; Aim for the 100,000 unit level
• Continue to optimize production capacity with local partners

Japan:

• Update 80% of the passenger model lineup, launching five all-new models
• Achieve a 70% electrification level in the passenger vehicle line
• Increase sales by 90,000 units (compared to FY2023) to 600,000 units in FY2026

Africa, Middle East, India, Europe and Oceania:

• Increase unit sales across regions by 300,000 units (in FY 2026 and compared to FY 2023)
• In Europe: Launch six completely new models; achieve 40% of EV passenger vehicle sales mix
• In the Middle East: launch of five all-new SUVs
• In India: Launch three all-new models and become an export hub with a 100,000 unit level
• In Oceania: launch a 1-ton pickup truck and present a C EV crossover
• In Africa: launch two all-new SUVs and expand the A-segment ICE vehicle

EV Competitiveness

The product offensive will be supported by new development and production approaches aimed at making EVs more affordable and increasing profitability. By developing electric vehicles in families, integrating powertrains, using next-generation modular production, group supply and battery innovations, Nissan aims to reduce the cost of next-generation electric vehicles by 30% (when compared to the current crossover model Ariya) and achieve cost-parity between EVs and ICE models by fiscal year 2030.

In the area of ​​family development alone, the cost of follow-on vehicles – those developed based on the main family vehicle – can be reduced by 50%, variation in trim parts reduced by 70%, and development time reduced by four months. By adopting modular manufacturing, the vehicle production line will be shortened, reducing production time per vehicle by 20%.

According to the Arc plan, more factories in Japan and abroad will adopt the Nissan Smart Factory concept, with the Oppama and Nissan Motor Kyushu plants in Japan, the Sunderland plant in the UK, and the Canton and Smyrna plants in the US beginning adoption of fiscal year 2026 to 2030. Meanwhile, the EV36Zero The production approach will be extended from Sunderland in the UK to factories including Canton, Decherd and Smyrna in the US and Tochigi and Kyushu in Japan from fiscal 2025 to 2028.

New technologies

The plan includes proposals to accelerate the evolution of vehicle intelligence technologies, such as the next-generation ProPILOT driver assistance system, which implements door-to-door autonomous driving technology, on and off the road, in private facilities and parking lots.

Nissan will offer enhanced lithium-ion batteries NCM, LFP and all solid-state batteries to provide diversified electric vehicles to meet different customer needs. Nissan will significantly improve NCM lithium-ion batteries, reducing fast charging time by 50% and increasing energy density by 50% compared to the Ariya. LFP batteries will be launched, to be developed and produced in Japan, which will reduce the cost by 30% compared to the Sakura EV mini vehicle. New EVs with improved NCM lithium-ion batteries, LFP and full solid-state batteries will be launched in fiscal 2028.

Strategic partnerships

Nissan will leverage strategic partnerships to remain competitive and offer a global portfolio of products and technology. Nissan will continue to leverage the alliance with Renault and Mitsubishi Motors in Europe, LATAM, ASEAN and India. In China, Nissan will fully utilize its local assets to meet the needs of China and other countries; and explore new partnerships in Japan and the U.S. Batteries will be developed and acquired with partners to bring 135 gigawatt hours of global capacity.

Financial discipline to deliver resilient, profitable performance

The basis of the plan is firm financial discipline, allowing for a stable ratio of CAPEX and R&D investment versus net revenue of between 7% and 8%, excluding investment in battery capacity. Additionally, Nissan plans to invest more than 400 billion yen in battery capacity. Meanwhile, investment in electrification will increase progressively, exceeding 70% by fiscal year 2026.

The management of these investments aims to enable the delivery of benefits to all interested parties, with Nissan maintaining a positive free cash flow before mergers and acquisitions – even after investments in electrification. This aims to guarantee a total shareholder return of more than 30%. Nissan aims to maintain net cash at a healthy level of 1 trillion yen during the Arc plan period.

“Under this comprehensive plan, we will improve Nissan’s competitiveness and achieve sustainable profitability,” added Uchida. “Nissan is confident it has everything it takes to properly execute this plan, which will provide us with the solid foundation we need to build our Nissan Ambition 2030 vision.”

*Nissan Motor Co., Ltd. fiscal years are April 1 to March 31

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