TOKYO — Nissan says it will be able to comply with U.S. local sourcing rules for electric vehicle tax credits from 2026 as it consolidates platforms and drivetrains for more competitive EVs.
The automaker will begin offering six EV nameplates in the important U.S. market from that year.
The lineup will include a next-generation Leaf hatchback and the Ariya crossover, as well as four new models made for the Nissan and Infiniti brands at its Canton, Mississippi, plant.
The latter models, two sedans and two crossovers, will qualify for the full $7,500 EV incentive.
Nissan’s efforts to tap into the tax credits offered under the Inflation Reduction Act will be achieved through compliance with rules on final assembly, content from foreign entities of concern and the localization of battery components and minerals, COO Ashwani Gupta said.
“We as Nissan are confident that we will be complying for IRA with localization starting in CY 2026,” Gupta said at a briefing on Monday about the company’s electrification strategy.
The U.S. localization plan will include making electric powertrains locally, including a possible revamp of the Decherd, Tennessee, engine plant to make EV units. Nissan currently imports completely built electric powertrains from Japan for the Leaf assemble in Smyrna, Tennessee.
The company may also consider using a second source for batteries in the U.S., in addition to its current supplier Envision AESC, which makes batteries at its Smryna, Tennessee, factory complex.
Localized mineral supply, Gupta said, will be the most difficult challenge.
“IRA is challenging, but on the other side, it’s an opportunity to accelerate the competitive electrification,” Gupta said. “The question is how we manage that transition to full localization.”
Because of IRA, Nissan expects more than 40 percent of its U.S. sales to be full electric by 2030, that is up from an earlier prediction of just 40 percent.
Gupta said the ultimate sales ratio will hinge on finalization of IRA requirements.
The EV ambition represents a big jump. Nissan North America sold 729,350 vehicles in the U.S. in 2022. But the electric-vehicle tally reached just 12,025 Leafs and 201 Ariyas.
Nissan also raised its outlook for EV sales in Europe, now targeting 98 percent of its volume in 2030, compared with an earlier goal of 75 percent in that timeframe. That target includes full EVs as well as the company’s e-Power hybrid setup. Nissan credited increased EV demand and the ability to sell in the compact EV segment through its partner Renault.
Globally, Nissan expects to get 44 percent of its sales from EV or e-Power vehicles by 2030, up from an earlier vision of 40 percent announced in November 2021 under its Ambition 2030 plan.
