Nissan looks to be operating based on demand as the automaking giant is reportedly postponing its Mississippi factory from producing more electric vehicles after demand growth is slower than experts predicted.
Many in the sector had anticipated an increase in interest in EVs rather than a decline.
However, according to consumer survey firm JD Power, people are anxious about conveniently charging EVs and are apprehensive about their expensive cost. As a result of these worries, customers' consideration of EVs has recently decreased.
Nissan now sells the Leaf small hatchback and the Ariya SUV as its two EV vehicles in the US. However, the company has revealed plans to construct five new EV models in Canton, two initially slated to go into production in 2025.
The new models were expected to include both Nissan and Infiniti automobiles. Nissan's luxury brand is Infiniti. However, Nissan has postponed its intentions to start manufacturing the cars in Mississippi.
Nevertheless, Nissan made it clear to sources that it is only changing the schedule for the release of these five new models to ensure the company releases the cars at the appropriate time, sets priorities based on consumer demand, and optimizes the potential for Nissan's brands and supplier partners.
Honda's EV Push
While Nissan intends to wait out the market, Honda Motor recently declared in April that it will invest $11 billion in Ontario, Canada, in order to create an all-electric value chain.
The new EV hub will be a key component of Honda's plan to prepare for the expected increase in demand for electric vehicles in the area. Joint venture partners' contributions, totaling about CAD$15 billion (USD$11 billion), will be included in the investment.
Honda intends to construct an autonomous EV battery facility and an inventive, ecologically conscious EV manufacturing plant in Alliston, Ontario.
Furthermore, a separator facility will be part of a joint venture with Asahi Kasei Corporation, and a cathode active material and precursor (CAM/pCAM) processing plant will be part of a joint venture with POSCO Future M Co., Ltd. Honda states that further information on these endeavors will eventually be available.
As of 2028, the business plans to start producing electric cars. It is anticipated that the EV battery facility will have a capacity of 36 GWh yearly and that the EV plant will generate up to 240,000 EVs annually once it is operational.
Toyota CEO on EVs
The slower growth in EV demand is consistent with Ted Ogawa, CEO of Toyota, who recently stated that by 2030, EVs will only account for 30% of the US new car market. This estimate is much below the goal of a 60% share that the Environmental Protection Agency (EPA) established last year.
Ogawa highlights how Toyota responds to consumer demand by emphasizing different types of "electrification," namely hybrids that combine conventional combustion engines with electric propulsion.
Reiterating Toyota's dedication to accommodating customer choices, Ogawa promoted a multifaceted strategy for electrification.
The Japanese carmaker is adamant about giving hybrids priority over BEVs (Battery Electric Vehicles) despite market tendencies to the contrary.
The company's commitment to producing hybrid and electric vehicles (EVs) for the North American market is demonstrated by its $13.9 million investment in a battery complex in North Carolina.
