Nissan Targets Doubling Leaf Sales to 40,000 in 2012
Nissan aims to double global Leaf sales to 40,000 units in 2012 as it expands availability and recovers from production setbacks in Japan.
Nissan is targeting a sharp increase in Leaf electric car sales for 2012, with a goal of reaching 40,000 units worldwide. The company set out its ambitions after a year marked by supply disruptions and a slower-than-expected start, according to senior management.
Andy Palmer, Nissan’s managing director of business strategy and corporate planning, told the Financial Times that Leaf sales in 2011 fell slightly short of initial expectations. The company delivered just over 20,000 units between the model’s debut in December 2010 and late November 2011, with the bulk going to customers in Japan and the US.
Production setbacks and recovery
The Leaf’s US launch was delayed by a month due to distribution issues, and the aftermath of the March 2011 earthquake and tsunami in Japan brought further complications. The Oppama plant, which builds the Leaf, closed for around three weeks as Nissan dealt with shortages of electronic components. These disruptions limited the company’s ability to meet earlier sales forecasts.
Despite the setbacks, Nissan reported strong order books for the Leaf. Palmer said the company’s 2012 sales target would “buffer up against our capacity”, reflecting both increased demand and the gradual resolution of supply chain problems.
Expansion into new markets
Nissan plans to expand Leaf availability in 2012, launching the electric hatchback in more European countries and additional US states. The company expects this wider rollout to be a key factor in achieving its doubled sales target. In the longer term, Nissan intends to localise production, with new assembly lines for the Leaf scheduled to open at its Smyrna, Tennessee plant in the US and in Sunderland, England from 2013. This move is expected to reduce logistical costs and improve supply resilience.
Nissan’s ambitions for the Leaf come as rivals also expand their electric offerings. General Motors reported a doubling of Chevrolet Volt sales in June 2011, as competition in the electric vehicle segment intensifies. For more on GM’s electric car sales, see Chevrolet Volt Sales Double in June as GM Outpaces Nissan Leaf.
Outlook for 2012
With production stabilising and the Leaf set for a broader market presence, Nissan’s 2012 sales target will test both supply capacity and consumer demand for electric vehicles. The company will also be monitoring how quickly new markets adopt the Leaf as infrastructure and incentives develop in parallel.
