Nissan has a new approach that will allow it to cut production costs by 30% and equalize the price between its e-Power and internal combustion engine cars. This is the goal that the company wants to achieve in 2026 after examining 2019 costs.
e-Power is the nickname for Nissan’s special powertrain which features a mini gas engine to recharge the battery – a technology that hasn’t yet been found in the US. e-Power Nissans carry a price tag of around $5,000 in foreign markets.
The Japanese automaker will use shared and modularized parts for its electric cars, thereby enabling reduced manufacturing costs for these EVs in the coming years. This move is part of a trend of cutting EV development costs that carmakers around the world are following.
In crafting its new powertrain, the company takes an approach it calls “X-in-1”, which includes both 3-in-1 and 5-in-1 schemes. The 3-in-1 application modularizes motors, inverters and reducers for electric cars, while the 5-in-1 method modularizes not just these components, but also generators and increasers. The latter approach is suitable for Nissan cars which have e-Power technology.
With X-in-1, the automaker will be able to build critical components on a single production line, thereby slashing costs and increasing efficiency. Other benefits include reducing the size and weight of the powertrain, as well as minimizing the use of rare earth elements to 1%.
Nissan aims to launch 27 electrified cars by 2030. Among the new models, 19 will be pure electric vehicles. That’s clearly not a small number, but with the X-in-1 approach, it can be a realistic goal. And with minimum production costs, the price of the EVs can be kept down. If Nissan’s plans go smoothly, it will potentially win a competitive advantage through lower pricing.