'Nissan's EV Plant Operating Rate Plummets to 10% Amid Management Crisis'

Operating Rate Falls Far Below Break-Even Point
Plant Closures and Layoffs Continue

[Image source=Reuters News Agency]

The operating rate of Nissan Motor's only passenger electric vehicle (EV) plant in Japan remained at around 10% last year, as the company struggled with poor performance and management difficulties.

The Yomiuri Shimbun reported on the 28th that the production operating rate at Nissan's Tochigi plant had plummeted.

The Tochigi plant has an annual production capacity of up to 190,000 units, but last year's actual output was only about 20,000 units. In 2024, the plant produced around 70,000 units, but this marked a sharp decline within a year. According to the Yomiuri, more than 150,000 units per year are required to break even.

The decline in operating rate has been attributed to sluggish domestic demand for electric vehicles in Japan, as well as the development schedules for new versions of key models such as the Leaf and Ariya. Sales of the Leaf and Ariya in Japan dropped by about 40% year-on-year in 2023. Approximately 60,000 electric vehicles were sold in Japan last year, accounting for just 1.6% of total passenger car sales.

In addition to electric vehicles, the Tochigi plant also manufactures premium gasoline vehicles, but sales prospects are reportedly bleak due to weakened brand competitiveness.

In an effort to normalize its management, Nissan announced in May last year that it would close seven plants worldwide and cut 20,000 jobs. In Japan, the company plans to sequentially suspend operations at the Oppama plant in Yokosuka and the Shonan plant of its subsidiary Nissan Shatai in Hiratsuka by March 2028.

The Yomiuri Shimbun noted that although Nissan's domestic production will be concentrated at three plants, the low operating rate at the Tochigi plant compared to the Oppama and Shonan plants could become a major obstacle to the company's business recovery.