Why Nissan Decided To Stop Investing In Gas Engines

Nissan is calling the plan it presented in March 2024 “The Arc,” and it details the automaker’s strategy to grow while simultaneously preparing for a transition to EV. The plan is two-pronged. First, Nissan aims to sell an additional 1 million vehicles each year, including those powered by electric and ICE. This, Nissan posits, should increase its profit margin by 6% by the end of 2026. If all goes according to plan, that profit margin will support the second part of the strategy, which is to transition to exclusively selling EVs.

The manufacturer wants to make sure 40% and 60% of its global portfolio is comprised of EVs by 2026 and 2030, respectively. That will start with the introduction of 16 new EVs over the next three years, and then another 34 by the end of the decade. Throw in some strategic partnerships and newer technologies for EVs and it starts to make sense why Nissan stopped investing in gas engines.

Nissan’s plan goes on to discuss the company’s strategy for improving the affordability of EVs for consumers, since all will be for nothing if people can’t afford its new EV cars. “By developing EVs in families, integrating powertrains, utilizing next-generation modular manufacturing, group sourcing, and battery innovations,” Nissan wants to reduce the price of next-generation EVs by 30% compared to the current cost of its Ariya, according to a Nissan press release.