Nissan plots low cost, low spec EV for China and emerging markets like India

Nissan, the maker of the world’s largest selling electric vehicle (EV) Leaf, could develop a new EV platform mainly for emerging markets.

During a media interaction session at Auto China 2016 which concluded yesterday, Carlos Ghosn, Nissan's chairman and CEO, said in response to a query from Reuters, "We think that a low-spec EV developed in China can interest India, can interest many other developing markets. That's why we are paying attention to this. This is not something specific to China, this is something which can become part of a global demand.”

Nissan is working with Chinese partner Dongfeng to develop the low-cost, low-spec EV. Nissan had earlier tested the waters for the Leaf in India but the car could be too expensive for the Indian market. A relatively low-cost EV would give Nissan the chance to play in, and perhaps grow, the nascent market of EVs in India. The central government has extended series of benefits under its FAME India (Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India) to support and promote EVs.  

In China, where the EV market is growing fueled by the government policy, Nissan hasn't quite tasted success. Ghosn says that Nissan stands vindicated regarding its positive stance on electric vehicles. But he is also "frustrated" because the returns, particularly in the Chinese market have not met expectations yet. China sold around 300,000 EVs last year but only some of them are profitable, according to Ghosn. Nissan's Venucia brand is in the unprofitable category because it is seen as too expensive by consumers. The Chinese electric car market is driven by cars with lower specifications.

Both Nissan and its Alliance partner Renault are working together to lower the cost of its vehicles. At the same time, the OEMs are "working very hard" to introduce low-spec and low-cost electric cars. And Ghosn is looking to reap the benefits of success in this effort, not only from China but also from India, and other emerging markets.  

Also read: Dongfeng and Groupe PSA developing electric car