Nissan EV Launch In India Delayed? What We Know So Far

At a time when Maruti Suzuki, Hyundai Motor India, Kia India, etc., are intensifying their focus on electric vehicles, Nissan Motor India is reportedly adjusting its EV strategy to align with changing market trends and economic uncertainties. According to sources familiar with the matter, the Japanese carmaker is reassessing its approach, aiming to balance its investments in EVs alongside the continued demand for petrol-powered and hybrid vehicles.

Measured Approach 

“Nissan is now taking a measured approach in India, where EV adoption is still in its early stages. Instead of accelerating its EV rollouts, the company is expected to take a phased approach, possibly introducing hybrid models before committing to a battery electric vehicle lineup,” revealed a source requesting anonymity. However, the source quoted above clarified that the company has not dropped any plans to launch its Internal Combustion Engine (ICE) SUV in the medium term.

Another source Republic Business spoke to revealed that the EV landscape in India is evolving, but challenges such as charging infrastructure, battery costs, and consumer acceptance remain key constraints for the company. 

Exploring Alternative Technologies

A Nissan Motor India spokesperson, when contacted, stated that the company is studying various alternative technologies, including EVs, hybrids, and CNG.

“We are cognizant of the diverse needs of the Indian customer, and Nissan's previously announced EV will play a key role in providing our customers with more options. However, we believe India's transition to greener vehicles will require a combination of technologies, something that is currently being studied by Nissan,” stated the company spokesperson in response to queries sent by Republic Business.

Talking about its future course of action, Nissan Motor India affirmed that it “remains committed” to its India operations, dealers, partners, and customers. “We remain on track with our plans announced earlier last year at the launches of the 4th Generation Nissan X-TRAIL and New Nissan Magnite,” the spokesperson added.

Global Disruptive Forces

Industry analysts reckon that many global automakers like Nissan, etc., many of which are readjusting their EV roadmaps due to factors such as fluctuating raw material costs, supply chain disruptions, geopolitical tensions, and regulatory uncertainties in key markets, etc. It was recently reported that the company would cut 9,000 jobs and 20 per cent of its manufacturing capacity as it struggles with sales in China and the United States.

“Nissan Motor India’s plans may face delays due to global market uncertainties and shifts in the automotive industry. Since India contributes lower volumes to Nissan’s global sales, it may be hard to justify new investments. Additionally, India’s market requires a different powertrain approach, making it more complicated for Nissan to move forward,” said Puneet Gupta, Director at S&P Global Mobility.

In 2024, Nissan Motor India registered 91,184 units in total wholesale dispatches, with the majority of the sales being derived from export markets. On a yearly basis, the sales were down by 32.2 percent from 94,219 units sold in 2023. At a global level, its parent company sold 3,348,687 units, down by 0.8 percent from 3,374,374 units.

Insurmountable Challenges

According to Avik Chattopadhyay, founder of Expereal and an auto industry veteran, “It is difficult to believe that a company that had made the world’s first series-produced BEV way back in 2010, the Leaf, is now floundering on its very existence. This is an outcome of slow decision-making and forgetting where its core brand promise lies. Its global insecurity will have an impact on its Indian operations.”

He also noted that while the plant might continue to make vehicles for export markets, the offering for the Indian customer is virtually nonexistent. “And none of what it plans in the near future will have any desired impact. The brand will be an ‘also-ran’ very soon this way. What is needed is a huge shake-up in the way it thinks and a break away from decades of needless bureaucracy,” noted Chattopadhyay.