Nissan Motor’s Global Strategy & Two Vision ZERO November 18, 2013 Toshiyuki Shiga Representative Director & Vice Chairman Nissan Motor Company Ltd. POWER 8 8 Global market Brand & sales power Sustainable COP (%) share by FY16 (%) FY13 Outlook 6.4% 5.4% WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2 2013 All rights reserved. Global Strategy Offensive Strategy Emerging Premium market markets Entry markets Leadership Strategy Autonomous driving Partnership Strategy www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 3 Emerging Countries Leading the Growth Source: Nissan Motor www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 4 New plant investments FY13 FY14 Under construction India new plant （Powertrain） (From Sept.) Under construction Jatco Thailand new plant (From Sept.) Under construction Mexico new plant (From Nov.) Under construction Brazil new plant (Spring) Under construction Oct. 2013/ 1on1 Thailand new plant Under construction Indonesia new plant Russia St. Petersburg Under construction plant expansion Under construction China Dalian new plant Under construction Jatco Mexico new plant (C) Copyright NISSAN MOTOR CO., LTD. www.nissan-global.com 2013 All rights reserved. 5 New Car Source of Sales (mature markets vs. growth markets） Replacement New Require products / services that cater to the Typical scene in needs of first-time buyers an emerging market Datsun brand offers new values www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 6 Introduction of Datsun India, Indonesia, Russia, & South Africa in 2014 Datsun’s target customers 400,000 rupee (approx.¥660,000) or less Dream Access Trust www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 7 Market Needs & Opportunities in India 50% of the market by 2016 Demand by price range 250,000 200,000 150,000 100,000 Nissan’s share at 0% today 50,000 00,000 Less than Rs.200,000Rs.200,001-225,000Rs.225,001-250,000Rs.250,001-275,000Rs.275,001-300,000Rs.300,001-325,000Rs.325,001-350,000Rs.350,001-375,000Rs.375,001-400,000Rs.400,001-425,000Rs.425,001-450,000Rs.450,001-475,000Rs.475,001-500,000Rs.500,001-525,000Rs.525,001-550,000Rs.550,001-575,000Rs.575,001-600,000Rs.600,001-700,000Rs.700,001-800,000Rs.800,001-900,000 Rs.900,001-1,000,000 $5,000 $7,500 $10,000 $12,500 $15,000 $17,500 Rs.1,000,001 and above 1USD=45.7 INR 8 www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 8 Progress & Goal of Infiniti Business Premium Market Analysis Infiniti Q50 world debut at Detroit auto show Premium brands account for 11% But represent 50% of of total light-vehicle sales. industry profits www.nissan-global.com 9 Building Stronger Infiniti Business Relocation of HQ to Hong Kong Currently IML 15 nationalities Grand opening ceremony held on May 2012 Infiniti Q50 world debut at Detroit auto show www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 10 Active Recruitment of Dedicated Personnel Develop Asia’s first premium brand with a team of professionals and experts Johan Michael Daniel SVP of NML in charge of global VP of Infiniti Americas Managing Director of Infiniti China Infiniti since last July. since this September. since this May Served as president of Audi’s Served as COO of Served as American operation Porsche Cars North Previous vice president of BMW’s joint America venture in China Speaks fluent Chinese www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 11 Adapting to the changing environment alone is tough Investment Customers Growth of emerging Speed needs countries Diverse green technologies Shift toward smaller / cheaper cars Connections with ＋ Human governments IT changes to automobile resources society Technologies www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 12 Capitalize on partnerships and local resources Share investments Capitalize Capitalize on local Partnership on local insights talents Complement technologies Complementarity Synergy Alternative Offset www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 13 Partnerships created so far www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 14 Case①：Renault Nissan Alliance Common Module Family Applied from Rogue / X-Trail in FY2013 Electrical & Electronics architecture Engine FR under Cockpit RR under Vehicle type compartment body body MPV Heavy weight High Position Heavy weight High hood SUV Middle weight Middle Position Middle weight SED Low hood H/B Light weight Low Position Light weight www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 15 Case②: Partnership Strategy with Daimler Infiniti Q50 Diesel engine essential for Europe and downsizing turbo Joint production of 4-cylinder gasoline engine in Tennessee, U.S. starting from mid-2014. Applied to Mercedes Benz C Class & Infiniti models Infiniti Q30 adopt some components of Daimler www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 16 Leadership Strategy Preparations to accomplish Nissan Power 88 hit the climax in FY2013, the end of the first half of the plan. Investments will bear fruits going forward. ＋ At the same time, Nissan is pursuing sustainable mobility under the vision and leadership strategy. Leadership Challenges to Social Vision Strategy develop sustainable Value (Goal) mobility (Solution) www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 17 Challenges by Nissan WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 18 2013 All rights reserved. Challenges by Nissan WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 19 2013 All rights reserved. Challenges to Develop Sustainable Mobility Energy Global warming Air pollution Accidents A h b Fossil fuels Emission Safety WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 20 2013 All rights reserved. Vision : 2 ZERO Energy Global warming Air pollution Accidents Zero emission Zero fatality A h b WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 21 2013 All rights reserved. 2 Approaches of Leadership Strategy Energy Global warming Air pollution Accidents Electrification Vehicle A h b Intelligence WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 22 2013 All rights reserved. Electrification for Zero emission Energy Global warming Air pollution Accidents交通事故 A h b WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 23 2013 All rights reserved. Shift from fossil fuel-powered cars to cars powered by renewable energy Fossil fuels Bio fuel Electric power Regeneration Storage Driving energy Ford Model T of 1908 Electric Vehicle WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 24 2013 All rights reserved. 100% EV Nissan LEAF Launched in December 2010 WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 25 2013 All rights reserved. Nissan LEAF Users’ Voice WWW.nissan-global.com 26 Compelling Attributes of EV Home charging Inexpensive Ultimate quietness electricity Zero emission Agility Around-the-clock connected services WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 27 2013 All rights reserved. Aggregate Global Sales of Approx.87,000 units (as of October 2013) Kanagawa Prefecture History of Nissan LEAF Sales Volume More than 50,000 units JPN Nissan LEAF Owners’ Event in San Francisco 30,431 US 22,908 5,061 Switch EV Project in U.K. FY10 FY11 FY12 FY13 FCST EUR WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 28 2013 All rights reserved. FAQ No matter how much you boost the number of eco-friendly EV, wouldn’t the issue remain unsolved as long as the power is generated by fossil fuels such as oil and coal? WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 29 2013 All rights reserved. Adoption of renewable energy is key However, power generated by natural energy is unstable. It is a challenge to supply at need. sunlight wind Unstable power supply water WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 30 2013 All rights reserved. EV for Energy Storage Using EV as energy storage enables practical use of renewable energy. sunlight EV wind 電 気 Store water electricity WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 31 2013 All rights reserved. Connect with power grid エネルギーIT network 温暖化 出典: NASA earth observatory （http://www.nasa.gov/vision/earth/environment/arcticice_decline.html） 渋滞 交通事故 People Power grid WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 32 2013 All rights reserved. Power Storage Capacity EV Battery Capacity Power Consumption 1 Average Household 24 kWh 10 kWh/day 400 Nissan GHQ Approx.10 MWh 10MWh/day 22,000 Nishi-ku, Yokohama Approx.530 MWh （53,000 households) 530MWh/day WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 33 2013 All rights reserved. Nissan LEAF’s Value as Storage Battery Storage battery capacity(kWh)/price(¥) LEAF has ¥7 million value as storage battery (excluding vehicle value) Power supply capacity of a ４００ Storage battery for LEAF(24KWh) household use on 単位（ 万円） the market ３００ ２００ For about For about 29 Days 160 Days Nissan１００ LEAF 24kWh/2980K Yen For about 10 Days WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 34 2013 All rights reserved. LEAF to HOME 2-way energy management by PCS* Sold about 2000 units (as of the end of October 2013) *PCS : Power Control System WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 35 2013 All rights reserved. Power Saving Initiative with Nissan LEAF A trial in Osaka Prefecture delivered expected results.