Nissan Motor Co., Ltd. (PNK:NSANY) Q1 2023 Earnings Call Transcript

And the second one, North America. In North America, you are delivering solid sales performance. Having said that, here again, electrification, there’s a shift to EV. It may top 1 million units this year. And you need to address this because this is an eminent challenge. In Canton Plant, you announced to introduce Bev after 2025 onwards. For this year and next fiscal year, can you expect to boost the sales volume in North America or you need to address the shift to electrification in anticipation to this, including the battery sourcing, what’s a projection in North America, and what are the challenges that you are addressing, and what are you doing to approach it? Thank you.

Makoto Uchida: I said about China earlier, this is just our projection. For example, EV in China and a new energy vehicle in tenders, are conscious about the prices of the vehicles. At the same time, they are also new technologies is what they are looking for, including the appearance. These are the needs of the customers in China. So, look we will use the — we will work together with the DNTC whom we have been working because this is the entity who has started the Venucia brand from the scratch while working with the team locally, we would like to launch the new cars that cater to the needs with speed. And will this immediately improve the performance? Of course, we have been discussing many plants. But in order to introduce new models, it’ll take some kind of a lead time.

So, what’s important is in fiscal year 2023, as I have described, we need to recover with the lineup that we have planned for this year. And 2024, 2024 will be the most important year for us. Well, this is our expectation, by the way, our own expectation probably. Local makers in China will be growing stronger and they are going to be strong and emerging in the rest of the regions as you may have seen already. So, in these circumstances, we need to enhance the cost competitiveness and enrich the line up at the same time and deliver them in a timely manner. This will be the determiner for our survival in China. So that’s what we would like to discuss and visualize it in the next mid-term plan. Therefore, does this mean that we are optimistic?

Not at all. It’s the other way around. We are increasing the sense of urgency. And under the new leadership, we would like to do with speed with delegation which is necessary. This is the most important factor. And your question about North America. North America too, there’s a big shift to EV. In terms of regulations, that is what is encouraging the shift of electrification as well. So we already have a plan, but is this plan sufficient? No. We need to look for other actions and ingenuity. And this is in part of mid-term plan and beyond. We already started discussing about it in the mid-term plan and beyond. And in August, we involve relevant executives to discuss what is the speed of the strategy for electrification in China will be discussed.

And here again, at the time of MTP, if I may, at MTP announcement, we would like to make sure it will be visualized. That’s our intention. The key is that we cannot just stay as it is. In Nissan NEXT, we have been enhancing quality of sales and make sure that the customers are appreciating our cars. So, next is how to adapt to the market circumstances with flexibility that will be the determiner. So, mid-term plan and beyond will be the important strategy. Nissan ambition 2030 is just a vision. So, in the next mid-term plan, we need to translate what we are envisioning in Nissan ambition 2030 and envisage the plan for the growth going forward. That’s the key.

Operator: Alright. Okay. Thank you so much. Moving on to [Nikesh Shimbun, Kawa Misan] (ph). Please go ahead.