The EV transition has been underway, albeit a slow one as consumer demand for EVs has slowed among US consumers. American car buyers are waiting for more affordable EV options and range anxieties to be lessened as charging infrastructure gets built out, turning to more accessible hybrid models in the meantime. What can help speed up the EV transition and jolt consumer excitement around full-electrification trends?
Nissan Americas (NSANY) Chairman Jérémie Papin sits down with Yahoo Finance's Pras Subramanian at the 2024 New York Auto Show to discuss the company's latest models, the EV transition, and how it can navigate changing consumer habits.
Papin talks about the idea of simplification in EVs: "As we start to think again about how to conceive EVs, you just bring simplification in it. You bring greater commonality across many of the models. You have fewer parts per car, and... the combination of both drives the cost efficiency. So yeah, we're thinking the next generation will see costs down by 30%."
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PRAS SUBRAMANIAN: We're here at the Nissan stand, the brand new global premiere of the Nissan Kicks, a very popular brand for the car. Nissan Americas chairman Jeremie Papin joins me now to discuss. So let's talk about the Kicks, an important car for the brand. What's, what's going to set it apart, do you think, in the market?
JEREMIE PAPIN: I think, just look at this amazing design, right? I mean, that's, that's the key, the key attraction when you see it. Obviously, we've also put more technology in. The connectivity is improved. It's an all wheel drive. We, this is first Kicks that's all wheel drive, which means all of the Northern states, obviously we have the technology that matters.
And we're bringing in driving assistance capabilities that were not in the first generation Kicks. So I think this one comes with the right level of technology, a great design, and we're still aiming for very attainable price points, which is really what the market wants at the moment-- good miles per gallon, affordable price points, and a lot of technology.
PRAS SUBRAMANIAN: It's noteworthy you mentioned miles per gallon because we were in the midst of a big EV transition and that, I don't know if it's on pause, it's slowing here. Nissan has a new strategy with that, globally but also in the US, their mid-term plan. How is that, how are things changed? I know fewer EVs, more gas powered cars coming up?
JEREMIE PAPIN: I think, our policy is to just move, the market will move with what the consumer wants, so we just want to offer the consumer as much choice as he can, and then they choose the powertrain that's right for them. And so, over the next three years, the company will be launching 30 new cars in the US seven. Within those seven, we will have all powertrains. We will have combustion engines, we will have battery EVs, plug-in hybrids, and hybrids.
And so with that, with that, breadth of lineup, obviously the consumer has the choice of deciding at what speed each of one of them wants to move towards electrification. What is true is that consideration for electrification continues to grow. Satisfaction for those who drive an EV is very high, and so the repeat sale is there. So we see constant growth in EVs coming forward.
PRAS SUBRAMANIAN: I noticed. I know that globally, I believe 30 new cars by 2026. 16 of those EVs, which is a bit I think fewer than what you guys originally planned for. And also want to achieve ice parity with EVs, or EV parity with ICE by 2030. Is that achievable? is that, is that a long-term goal that can happen?
JEREMIE PAPIN: I think it's achievable. Because again, as we start to think again about how to conceive EVs, you just bring simplification in it. You bring greater commonality across many of the models, you have fewer parts per car, and the combination of both drives the cost efficiency. So yeah, we're thinking the next generation will see costs down by 30%. All of this, most of it, really to the consumers benefit in terms of making sure we live up to our purpose, which is to offer vehicles to as many and as large of a consumer base as we can at Nissan.
PRAS SUBRAMANIAN: Yeah, vehicles like the Kicks then also with vehicles like Infinity offering a broader range of products here. Nissan of, course, has big presence in the US manufacturing presence here. But also you guys ship from abroad. We've seen what happens in Baltimore right now with the port being shut down, and with that bridge situation. Is Nissan impacted at all by that Baltimore situation?
JEREMIE PAPIN: First of all, my thoughts go to obviously the families, the colleagues, the friends of the victims, of this terrible accident. We've been happy users as a business of the Baltimore port. We've redirected ships in, to other ports on the East side of the country. And I think there will be no interruption to our business in the short term, and we're looking forward to working again out of Baltimore whenever the port will be ready.
PRAS SUBRAMANIAN: So no impact there with what's going on in Baltimore?
JEREMIE PAPIN: No.
PRAS SUBRAMANIAN: But, but big picture in the Americas or in the US at least. What is your high level view of the market, of the broader auto market in this country?
JEREMIE PAPIN: I think the market is fairly strong. It's around 16 million units at a high level,. There was pent up demand. A lot of that has been eaten up by where the interest rates have taken monthly payments. But the industry is solid. Consumer is in need of cars, driving population has expanded, and people who have a driving license want a car. And so we should be positive and optimistic about the market going forward. We're surely very optimistic about our business, because we have so much product announcements.
You've mentioned Kicks, you've mentioned the infinity QX80, both models coming into high growth markets segments of the markets, the more entry SUV or the premium market. We'll have two more very new cars later this year at Nissan, and then another three over the next few years. So a lot of momentum. So we feel, we have, we're confident about the strength of the market, and we're very confident about our market share gains.
PRAS SUBRAMANIAN: So Nissan is optimistic. Other brands have told me the same thing. They're optimistic with what's happening in 2024. High rates, forget about that, they're still selling cars. Jeremie Papin, thank you so much for joining us.
