Nissan unveils multi-faceted Arc business plan

Nissan have unveiled The Arc business plan which aims to drive value and enhance competitiveness and profitability.

The Arc business plan includes a broad-based product offensive, increased electrification, new approaches to engineering and manufacturing, the adoption of new technologies and the use of strategic partnerships to increase global unit sales and improve profitability.

As part of the two-part plan, Nissan will first take actions to ensure volume growth through a tailored regional strategy and prepare for an accelerated transition to electric vehicles, supported by a balanced electrified and internal combustion engine portfolio, volume growth in major markets and financial discipline. Thanks to 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 year 2026. This will pave the way for the second part of the plan, which aims to enable the electric vehicle transition and realise long-term profitable growth supported by smart partnerships, enhanced EV competitiveness, differentiated innovations and new revenue streams.

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 internal combustion models in order to meet the diversified customer needs in markets where the pace of electrification differs. Furthermore, Nissan plans to launch a total of 34 electrified models from fiscal year 2024 and 2030 to cover all segments, with the model mix of electrified vehicles expected to account for 40% globally by 2026 and 60% by the end of the decade.

In Africa, Middle East, India, Europe and Oceania Nissan aims to increase sales by 300 000 units in 2026. In Africa more specifically, Nissan plans to launch two all-new SUVs and expand the A-segment internal combustion engine portfolio.

EV competitiveness

The product rollout will be supported by new development and manufacturing approaches aimed at making EVs more affordable. By developing EVs in families, integrating powertrains, utilising next generation modular manufacturing, group sourcing and battery innovations, Nissan aims to reduce the cost of EVs by 30% and achieve cost parity between EVs and internal combustion powered models by 2030. 

New technologies

The plan includes proposals to accelerate the evolution of vehicle intelligence technologies such as next-generation Pro Pilot driver-assistance system, which realises door to door autonomous driving technology from on highway to off highway, private premises and parking. Nissan also aims to offer enhanced NCM li-ion, LFP and all solid-state batteries to provide diversified EVS that meet different customer needs.

Strategic partnerships

Nissan will harness strategic partnerships to stay competitive and offer a global portfolio of products and technology. This includes the continuation of the alliance with Renault and Mitsubishi Motors in Europe, LATAM, ASEAN and India.

Financial discipline

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

With this comprehensive plan, Nissan aims to enhance their competitiveness and achieve sustainable profitability. Nissan believe that they have what it takes to properly execute this plan which will provide the brand with the foundation required to bridge to their Nissan Ambition 2030 vision.