Nissan has stated that the company will switch to EVs. The Japanese company will no longer develop cars with internal combustion engines (ICE), except for the US market. There, Nissan will develop ICEs for pickup trucks where the company still expects high demand.
The cause for this is the Euro 7 emission standards. Euro 7 is expected to come into effect in 2025. As development costs skyrocket and with limited time, EVs are the answer. However, current production of engines will still continue.
As part of this transition, Nissan’s is transferring their R&D funding (500 billion yen or RM 18 billion) from ICEs to other sectors. The company will transfer personnel to other departments.
Nissan will also slowly phase out petrol engines developed for the Chinese and Japanese markets but will continue producing hybrids.
Moving forward, this may impact the car industry severely. Although Nissan is the first Japanese company to make this switch to EVs, it likely will not be the last. The used car industry may also see a gradual shift towards EVs, as more EVs and hybrids hit the road.
This shift may create a push for more EV charging stations in the country as the EVs already in Malaysia have limited range due to a lack of charging facilities. If we are to drive them on our roads, Malaysia needs to upgrade her EV infrastructure.