Japan's Nissan Motor Co Ltd (OTC:NSANY) reportedly could shift production of its ultra-compact electric cars in-house, currently built by partner Mitsubishi Motors Corp (OTC:MMTOF).
Nissan is contemplating relocating production to its Kyushu factory in the fiscal year commencing April 2028, according to a report from Reuters.
The Nissan Sakura was Japan's best-selling vehicle in the passenger EV market in 2023, with a 42% share, the report noted.
Nissan reportedly views Sakura's success as an opportunity to boost production efficiency and reduce costs, potentially capitalizing on the growing demand for kei electric vehicles.
The plan, if realized, aims to enhance profit margins for Nissan, which currently lags behind competitors like Toyota Motor Corp (NYSE:TM) and Honda Motor Company, Ltd. (NYSE:HMC) in this segment, as per the report.
The automaker's Kyushu plant, with an annual capacity of 500,000 vehicles, is poised to play a central role in this strategic shift, freeing up capacity for producing kei EVs.
The Sakura, known as a "kei car," is specifically designed for the Japanese market.
The report further noted that Nissan and Mitsubishi would continue to handle the planning and development of kei EVs through the joint venture NMKV.
The parties established NMKV on June 1, 2011, as a 50/50 joint venture engaged in product planning and project management for minivehicles sold in the Japan market.
Price Action: NSANY shares traded lower by 0.80% at $7.45 on the last check Friday.
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