Tokyo: Nissan Motor Co. has been forced to sharply reduce its planned production of the new-generation Leaf electric vehicle due to shortages in battery supply, according to a report by Nikkei. The setback highlights the persistent vulnerability of global electric vehicle makers to supply chain bottlenecks, particularly in battery production, which remains the cornerstone of the EV industry.
The automaker had originally planned a robust output schedule for September through November at its Tochigi plant in eastern Japan, which manufactures the new Leaf for both domestic markets and exports to the United States. However, Nissan has now cut back its monthly production plan by several thousand vehicles, amounting to more than half of its initial target. The cause has been identified as “lower than expected yields” at a Nissan-affiliated battery manufacturer, which has struggled to meet quality and supply expectations.
Despite the reduction, Nissan maintains that the official launch of the new Leaf remains on track for later this year. The company has not issued a detailed public statement but has not disputed the report. For Nissan, the stakes are high: the Leaf was once a trailblazer in the EV market, but competitors have since outpaced it with aggressive new models and diversified portfolios. The success of this latest version is crucial for Nissan’s strategy to reassert itself as a leader in the electric mobility sector.
The implications of the production cut extend beyond Nissan’s immediate output. In a market where consumer demand for electric vehicles is growing rapidly, supply constraints risk slowing adoption. Industry analysts note that delays or shortages can dampen consumer confidence, especially as rival automakers like Tesla, Hyundai, and BYD continue to expand their EV offerings. For Nissan, every missed production milestone may translate into lost ground in an increasingly competitive global marketplace.
The issue also underscores the broader challenge facing the EV industry: batteries. While automakers worldwide are investing heavily in design, assembly, and marketing, their success ultimately depends on the consistency and capacity of battery production. Even small disruptions in yields can translate into significant bottlenecks, slowing entire production lines and impacting global sales forecasts.
Nissan’s decision is also a reminder of the broader economic stakes. EVs are central to government decarbonization plans, and shortfalls in production can affect supply chain partners, investors, and policy targets alike. For Japan, where Nissan remains a flagship brand, such challenges reflect the urgent need for stable and scalable domestic battery production.
As the EV race intensifies, all eyes will be on Nissan to see how it navigates these difficulties. Whether it can stabilize its supply chain and deliver on its promises will determine not only the success of the new Leaf but also its place in the rapidly evolving global electric vehicle landscape.