This is a new trend in the automotive industry since Nissan said it will no longer invest in new gasoline and diesel engines. This message, taken in June 2024, can be considered a turning point in the company’s development since it is transitioning to the era of EVs. It is quite apparent, given Nissan’s audacious approach to discontinuing ICEs in favor of cleaner propulsion methods.
They made this decision at once when the whole automotive industry was striving to meet emissions standards set in a bid to reverse the impact of climate change that is experienced globally, as well as increase consumers’ preference for environmentally friendly vehicles. Nissan could turn towards this new direction as a major commitment and alter the competitiveness of electric cars in the world markets.
The strategy Nissan implemented: Announcing its destination and future plans
The head of Nissan’s AMIEO region and Senior Vice-President, Francois Bailly, was sure that the company’s further development is linked with EVs. The automaker has now ceased all investment in ICE’s new powertrain development, which is a clear push for electrification. This decision is not wholly surprising either, primarily because Nissan had declared that it would no longer work on ICE cars in 2022.
The company’s intention to pursue this route is clear from the emphasis placed on e-Power technology, an early form of hybrid system in which the combustion engine performs the duty of the generator to charge the battery instead of solely providing power to the wheels. Nissan can use this strategy to achieve a middle ground between ICEs and BEVs, making the conversion easier for the consumer.
Japanese car manufacturers: Diverging strategies in the automotive market
As Nissan and other Japanese manufacturers move forward with strategic EV plans, other Japanese automakers are taking novel approaches. Toyota, Mazda, and Subaru are some of the car makers that have recently embarked on a major joint project to produce the next generation of hybrid combustion engines. Many of these companies think that internal combustion engines can be made more efficient and, therefore, are trying to develop nearly carbon-free fuels.
Toyota says it’s growing three inline-four BEVs, Mazda has a dedicated rotary skunkworks, and Subaru is developing a new hybrid setup based on its famed boxer architecture. This divergence of strategies among Japanese automakers is another example of the controversy raging in the automotive industry over whether to embrace green technology at the expense of profits or remain lean and profitable while the environmental arguments rage on.
Nissan’s strategy: Balancing individualist culture and global market factors
Meanwhile, Nissan remains a staunch pillar of the EV ecosystem while understanding that the shift from ICEs will be gradual. Bailly highlighted, for instance, that emissions standards are still being diluted in some regions of the world, such as Africa, where the Euro 2 car standards are still permissible. Currently, Nissan has yet to phase out ICEs from its portfolio but has intended to adapt its product distribution to regional markets, thus suggesting the elimination of ICEs will be relative to market demands.
The company will probably keep enhancing the existing engines to meet the stricter regulatory measures regarding EV markets where these vehicles are not yet viable or in high demand. Thus, this approach enables Nissan to keep a presence in various global markets as it gradually moves towards its electric future. In this manner, Nissan has effectively implemented a strategic approach that enables it to meet short-term market conditions and global automotive requirements efficiently and will not greatly disrupt Nissan’s long-term vision for its company.
Nissan’s decision to cease development: A new direction in the car manufacturing revolution
Therefore, Nissan’s decision to cease the development of brand-new gasoline engines also marks a new direction in the car manufacturing revolution. While some of Nissan’s competitors are still investigating ways to improve the environmental adaptability of ICEs, Nissan has concentrated solely on electric propulsion systems. This daring step puts the company strategically in the middle of the shift towards EVs; however, it also implies certain difficulties.
The effectiveness of this will, of course, be contingent on developments in battery systems, charging networks, and acceptance of electric cars. Indeed, Nissan’s bet on all-in bets on EVs could be the new norm for the automotive industry and might even hasten the obsolescence of the gasoline and diesel-powered automobile market.
