Nissan is investing heavily in electric vehicles in the UK

Nissan wants to take back control of electric vehicles in Europe. This Friday, the Japanese manufacturer announced that it wants to invest up to 1.29 billion euros in the production of two new electric vehicle models at its plant in Sunderland, UK. The car giant adds that the additional battery plant and other investments in infrastructure projects will lead to investments that could reach £2 billion in total.

Nissan said the investment covers both the broader research and development supply chain and infrastructure upgrades for future vehicle production. The manufacturer is planning electric versions of its Qashqai and Juke models, as well as a new generation of its Leaf electric car, launched about a decade ago and already produced in Sunderland.

This announcement will provide a boost to the UK automotive industry. “Nissan’s investment is a huge sign of confidence in the British car industry, which already contributes €81 billion a year to our economy,” British Prime Minister Rishi Sunak immediately welcomed. It must be said that the British government did everything possible to receive this award. According to Nissan, the company “provided €17 million in funding for a €34 million Nissan-led joint project” in Cranfield, Bedfordshire.

Declining share of electric vehicles in the European market

“With the introduction of electric versions of our core European models, we are moving towards a new era for Nissan,” said group general manager Makoto Uchida.

However, Nissan’s bet is far from winning. The demand for thermal or electric vehicles in the European Union continues to grow. In October 2023, more than 850 thousand new passenger cars were registered. An increase of 14.6% over twelve months was reported by the Association of European Automobile Manufacturers on November 21, 2023. But at the same time, the share of electric vehicles in the European market has actually decreased. From August to September 2023 it rose from 21% to 14.8%, and in October to 14.2%. In the first ten months of the year, electric vehicles will overtake diesel in the European market (12%). Petrol-powered cars remain far ahead with 33.4% of sales. Hybrids follow with 29%.

The slowdown in electric vehicle production due to high acquisition costs, despite assistance or even lack of terminals, is already having consequences, as manufacturers such as Volkswagen or Fiat are forced to reduce their production. Moreover, Chinese manufacturers are entering the European market with cars whose prices are very competitive.