AUTONEWS

Nissan and Mitsubishi will partner to try to break Japanese resistance to electrified

Japanese automakers are generally quite indifferent to electric vehicles, aside from the Nissan Leaf's rather successful expansion into the global market, but in the Japanese domestic market this type of vehicle remains exotic. Nissan and Mitsubishi, as part of an alliance, will try to turn the tide by offering Japanese compact electric cars for less than $15,700.

Attractive prices by local standards, of course, can be achieved through government subsidies, but this demand-stimulating factor is present in many foreign markets. Nissan and Mitsubishi will introduce so-called “kei cars” to the Japanese market this summer, which, due to their compact overall dimensions, enjoy tax benefits and are in high demand in Japan. However, when equipping these ICE machines, the volume and power of the engine were also significantly limited, but when switching to electric traction, these factors are unlikely to affect the characteristics of the machines, although it is obvious that in order to reduce weight and cost, the traction battery capacity will have to be sacrificed.

Kei cars now account for up to 40% of Japan's main car market, so Nissan and Mitsubishi are counting on some success with their budget EVs. Of course, demand will also be determined by the presence of a developed charging infrastructure, so the migration to electric traction will not be instantaneous. At the same time, Japanese manufacturers will be able to successfully rely on electric vehicles of this format only in the domestic market, since to expand beyond their borders they will have to resist the proposals of Chinese competitors. The latter offer compact electric vehicles ranging from $4,500 to $7,800 if we're talking about Great Wall or SAIC-GM-Wuling products. At these prices, compact electric vehicles produced in Japan will definitely not be able to compete, but at least they will push the domestic fleet towards electrification.

Image source: Asian Nikkei Review