“The Arc”, Nissan's new growth strategy | FormulaPassion

It's called “The Arc” and it's the new business plan put in black and white by Nissan for, according to the Japanese car manufacturer itself, “create value, improve competitiveness and profitability”. A strategy whose first deadline is 2026, the year by which various objectives will be achieved: one above all, reporting 1 million units of additional sales compared to fiscal 2023 and achieve an operating profit margin greater than 6% by the end of the fiscal year.

30 new models

But Nissan's growth ambitions also involve expanding the model range: the Japanese giant promises to introduce 30 new vehicles by 2026, of which more than half, 16 to be precise, are electrified. If we look at Europe alone, Nissan estimates the launch of six new models and the achievement of an EV sales mix of 40%. Speaking of electrification: The Japanese automaker intends to increase the competitiveness of its electric vehicles, reducing the cost of new generation ones by 30% and achieving cost parity between electric and ICE vehicles by fiscal year 2030.

Electrical and thermal

How to reduce costs? For example, through the development of “families” of vehicles that will be produced starting from fiscal year 2027. But also by promoting strategic partnerships extended to technology, product portfolio and software services. However, Nissan wants to be clear on one point: focusing on electric does not mean completely abandoning combustion. In this sense, the company has set itself a 60% share of cars with internal combustion engine to be renewed by fiscal year 2026.

For global growth

“'The Arc' plan shows our path to the future and Nissan's ability to address changing market conditions. The plan will allow us to better and faster create value and competitiveness, through decisive actions to ensure sustainable growth and profitability – declared Makoto Uchida, President and CEO of Nissan – With this global plan we will strengthen Nissan's competitiveness and we will achieve sustainable profitability. Nissan has what it takes to successfully execute this plan, which will provide us with the solid foundation needed to achieve our Nissan Ambition 2030 vision.”