Nissan Plans to Invest $17.6 Billion in Vehicle Electrification over 5 Years

Nissan Motor Co has announced plans to put in $17.6 billion towards electric vehicle development in the coming years. The company is aiming to speed up in the field and catch up with rivals.

The automaker will reveal a detailed electrification plan after introducing its previous Leaf model over a decade ago. The firm will be spending twice more than it has done before to compete for a larger share in the electric vehicle market. Tesla and Toyota Motor are among the few rivals who have already started gaining traction in electric vehicle development.

Nissan will add 23 new electric vehicles by 2030 and will bring down battery costs by at least 65%. Chief Executive Makato Uchida said, “We will advance our effort to demonstrate electrification.” However, some experts are saying that Nissan’s plans come late and state the company is already much behind in the race.

Masayuki Otani, senior analyst at Securities Japan Ltd said, “Nissan’s long term vision comes at a time when the market is perhaps not receptive to it. It can be said that it represents a huge increase in investment, it feels cautious.” The company’s shares fell by 5.1% on Monday, performing lower than rivals. On the other hand, Nissan has not pledged to eliminate gasoline vehicles entirely. Its new line of vehicles will also include power hybrids and EV’s.

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