EV adoption in the US progressing faster than expected

Nissan Motor President Makoto Uchida has admitted that the market for electric vehicles is growing faster than expected in the United States. He also said Nissan will invest $250 million in its powertrain facility in Decherd, Tennessee. The facility will support the electrification of the company’s American lineup.

Uchida did not provide a timeline for the $250 million investment or specify what it will be used for. But he said the investment is part of Nissan’s efforts to boost the adoption of electric vehicles in the United States.

“The world is adapting to EVs much faster than we ever thought, and the electrification rate in each market will probably grow faster than we thought,” Uchida said in an interview. car news.

Uchida said the growing popularity of electric vehicles is actually driven by increased competition and the availability of electric vehicles in the market. He also emphasized the role of regulation and government incentives in creating a favorable environment for electric vehicle adoption. Mr. Uchida specifically cited tax credits under the Inflation Control Law as a factor supporting long-term demand for EVs.

“In the short term, the IRA is probably a challenge for us. But in the future, it will become more likely that electric vehicles will penetrate the market,” Uchida said.

Nissan’s planned investment in Decherd is part of the company’s efforts to establish a US-based EV production base. The facility currently produces approximately 1.4 million engines a year, as well as the electric motors used in the company’s ubiquitous electric hatchback, the Nissan Leaf. The new investment is expected to increase the output of electric motors at the Tennessee plant.

Nissan seems to be serious about pushing electric vehicles, but the company’s current EV output still leaves a lot to be desired. In the fiscal year ended March 31, 2022, battery electric vehicles accounted for just 1.4% of Nissan’s sales in North America. Also, the company currently only has two EVs of his for the US, the Nissan Leaf and Ariya. However, the Leaf has long been a mainstay of the electric vehicle market, with 12,025 sales in 2022, while Ariya sold only 201 by the end of the year.

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Nissan CEO: EV penetration in the US is progressing faster than expected

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