Nissan unveils “The Arc” strategy to boost market value and competitiveness

Nissan Motor Co., Ltd has announced a new business strategy called “The Arc,” designed to enhance its market value and strengthen its competitive position in the automotive industry. This strategy outlines a range of initiatives focused on launching new products, advancing electrification, adopting innovative engineering and manufacturing practices, integrating emerging technologies, and leveraging strategic partnerships. These measures aim to increase global sales and improve profitability.

“The Arc” serves as a transitional framework between Nissan’s Nissan NEXT business transformation initiative, which ran from fiscal 2020 to fiscal 2023, and its long-term vision, Nissan Ambition 2030. The strategy sets short-to-mid-term goals for fiscal years 2024 to 2026 and outlines actions extending to 2030 to ensure sustainable growth and a competitive edge.

Makoto Uchida, President and CEO of Nissan, highlighted that “The Arc” reflects the company’s adaptability and commitment to navigating market fluctuations. The strategy is designed to boost value and competitiveness amidst market volatility.

The strategy is divided into two phases. The first phase aims to drive volume growth through a region-specific approach and transition swiftly to electric vehicles (EVs). This involves a strategic mix of electrified and internal combustion engine (ICE) models, expanding market presence in key regions, and maintaining financial prudence. By the end of fiscal year 2026, Nissan expects to increase sales by 1 million units and achieve an operating profit margin exceeding 6%. The second phase focuses on accelerating the shift to EVs, achieving long-term profitability through strategic collaborations, enhancing EV competitiveness, pioneering innovations, and exploring new revenue streams. By fiscal year 2030, Nissan anticipates generating 2.5 trillion yen in revenue from emerging business opportunities.

Nissan plans to introduce 30 new models over the next three years, including 16 electrified and 14 ICE models. From fiscal year 2024 to 2030, the company aims to launch 34 electrified models and expects electrified vehicles to account for 40% of global sales by fiscal year 2026, rising to 60% by the end of the decade.

The strategy includes targeted initiatives to increase market presence in key regions such as the Americas, China, Japan, Africa, the Middle East, India, Europe, and Oceania. These efforts are supported by significant model launches and investments to enhance customer experiences and expand Nissan’s market footprint.

Nissan’s strategy also emphasizes improving EV affordability and profitability through innovative development and manufacturing techniques. The company plans to adopt family-based vehicle development, modular manufacturing approaches, and advances in battery technology to reduce costs and achieve price parity between EVs and ICE models by fiscal year 2030.

Additionally, Nissan aims to strengthen its technological capabilities, particularly in vehicle intelligence systems like ProPILOT driver-assistance technology, and diversify its battery offerings to meet varying customer needs. Strategic partnerships will play a crucial role in maintaining Nissan’s competitive edge and expanding its global product and technology portfolio.

Financial discipline is central to “The Arc,” with Nissan prioritizing stable investment in capital expenditures and research and development, excluding battery capacity investments. The company plans substantial investments in battery capacity and electrification to ensure positive cash flow and a strong financial position throughout the strategy’s implementation.

Uchida concluded by expressing confidence in the successful execution of “The Arc,” which is intended to lay a strong foundation for achieving Nissan’s 2030 targets and maintaining a competitive advantage in the automotive industry.