According to media reports, five sources have revealed that Japanese automaker Nissan may begin producing ultra-compact electric cars on its own, with its Sakura model (produced by alliance partner Mitsubishi Motors) currently enjoying success.
Two sources, speaking on condition of anonymity, indicated that Nissan is considering starting production of such models at its factory on Kyushu Island in southern Japan from April 2028. Both Nissan and Mitsubishi have denied this claim.
According to calculations by foreign media based on data from the Japan Automobile Manufacturers Association, in 2023, the Nissan Sakura captured 42% of the market share, making it the best-selling model in Japan's passenger electric vehicle market. Since its launch in mid-2022, sales have approached nearly 64,000 units. Given that American competitor Tesla and leading Chinese electric vehicle manufacturer BYD have already squeezed Nissan out of the top ten brands in China, the performance of the Sakura model can be considered quite impressive.
Nissan is a pioneer in the electric vehicle industry, but the profit margin of its Leaf compact car is lower than that of Toyota and Honda models. Nissan's own production of ultra-compact electric cars is expected to help improve its profit margin.
The Sakura is classified as a "K car" in Japan, which means it is smaller and less powerful than regular cars, and is sold only domestically in Japan. The Sakura is currently produced by Mitsubishi at its Mizushima plant in western Japan. Sources indicated that Nissan will continue to rely on this factory to produce other models.
Sources revealed that Nissan expects sales of electric K cars to continue to rise, as these models are priced lower than regular cars and are well-suited for short-distance travel. One source stated that by producing such cars themselves, Nissan hopes to "improve production efficiency and reduce costs."
The source also mentioned that Nissan and Mitsubishi will continue to be responsible for the planning and development of electric K cars through their joint venture NMKV, in which each holds a 50% stake.
The annual production capacity of Nissan's Kyushu factory is 500,000 vehicles. Another source stated that Nissan expects the factory's capacity utilization rate to be around 80% this year.
