Nissan Motor Co., Ltd.

Nissan has a considerably high research and development expenditure annual expenditure, of which a large amount is dedicated to decarbonisation. This is in part due to the company’s investment in the Renault-Nissan-Mitsubishi Alliance, which has already jointly invested US$200 million since 2018 in electrification and advanced technologies, such as intelligent charging power grids and electric vehicle battery storage solutions. Through continued involvement in this Alliance beyond 2022, Nissan could further diversify its business model.

Low-carbon vehicle share

Battery electric vehicles have represented between 0.6 and 1.3 percent of Nissan’s new vehicle sales since 2011. However, this share has not increased in recent years. Alongside consumer engagement and marketing initiatives, Nissan should increase electric vehicle sales given its well-established and mature technology.  Moreover, Nissan set an ambitious target of selling 1 million battery and plug-in hybrid electric vehicles by 2022, indicating its aim to market hybrids over fully electric models. Nissan should promote its existing battery electric vehicles and release more fully electric models to decarbonise the automotive industry.

Nissan has significantly decreased its manufacturing emissions in recent years, though this is not reflected in its target setting. The company’s current manufacturing emissions target for 2022 is more ambitious than what it has been able to achieve in recent years. Moreover, the target for 2050 is not aligned with the decrease required under the low-carbon pathway. Nissan should improve how it commits to and monitors progress on its emissions targets.

Nissan has committed to cutting 30 percent of its manufacturing emissions by 2022, and 80 percent by 2050, as compared to its 2005 levels. It has also set a target to sell 1 million battery and plug-in electric hybrid models annually by 2022.

Nissan does not have a comprehensive low-carbon transition plan that combines its scenario analysis and climate-related stress testing. However, within Nissan’s medium-term plan “M.O.V.E. to 2022”, the company has stated its intentions to lead the industry’s electric vehicle market, to expand autonomous vehicles’ driving distances and to develop an autonomous vehicle model as well as ride-hailing services.

Nissan is currently developing 20 battery electric vehicle models in a joint venture with Chinese auto manufacturer Dongfeng. It is also scaling up its partially or fully electric vehicle production

Nissan was an early mover on electric vehicle production. Since 2012, approximately 1 percent of its vehicles sold each year have been low-carbon models, namely the battery electric Nissan Leaf. The company has also steadily reduced its manufacturing emissions. Moreover, Nissan holds the largest share in the Renault-Nissan-Mitsubishi Alliance which has allocated a significant amount of resources to developing electric vehicle technologies and new passenger mobility services

Nissan has been consistent in the past regarding its decarbonisation efforts. The company has been producing electric vehicles since 2010, and a steady share of its sales come from these models. It also has set ambitious emissions reduction targets, aiming to sell 1 million electric vehicles a year starting from 2022. However, this target may prove overly ambitious given that the proportion of its annual sales of electric vehicles have not been increasing as expected.