Nissan Motor’s Global Strategy & Two Vision ZERO November 18, 2013 Toshiyuki Shiga Representative Director & Vice Chairman Nissan Motor Company Ltd. POWER Brand & sales power FY13 Outlook 8 Global market share by FY16 (%) 6.4% WWW.nissan-global.com 8 Sustainable COP (%) 5.4% (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 2 Global Strategy Offensive Strategy Emerging markets Premium market 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) Under construction Jatco Thailand new plant (From Sept.) Mexico new plant Under construction (From Nov.) Brazil new plant Under construction Under construction (From Sept.) Oct. 2013/ 1on1 (Spring) Thailand new plant Under construction Indonesia new plant Under construction Russia St. Petersburg plant expansion Under construction China Dalian new plant Under construction Jatco Mexico new plant www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 5 New Car Source of Sales (mature markets vs. growth markets) Replacement New Require products / services that cater to the needs of first-time buyers Typical scene in 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 www.nissan-global.com Dream Access Trust (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 7 $5,000 st ha n Rs Rs .20 . 20 0,0 0,0 00 01 22 Rs . 22 5,0 00 5,0 01 -2 Rs 50 . 25 ,00 0,0 0 01 -2 Rs 7 . 27 5,0 5,0 00 01 30 Rs . 30 0,0 00 0,0 01 -3 Rs 25 . 32 ,00 5,0 0 01 -3 Rs 5 . 35 0,0 0,0 00 01 Rs 37 . 37 5,0 5,0 00 01 -4 Rs 00 . 40 ,00 0,0 0 01 -4 Rs 25 . 42 ,00 5,0 0 01 -4 Rs 50 . 45 ,00 0,0 0 01 -4 Rs 75 . 47 ,00 5,0 0 01 -5 Rs 00 . 50 ,00 0,0 0 01 -5 Rs 25 . 52 ,00 5,0 0 01 -5 Rs 50 . 55 ,00 0,0 0 01 -5 Rs 75 . 57 ,00 5,0 0 01 -6 Rs 00 . 60 ,00 0,0 0 01 -7 Rs 00 . 70 ,00 0,0 0 01 -8 Rs 00 . 80 ,00 0,0 0 0 1 Rs -9 . 90 00 ,00 0,0 01 0 Rs -1 ,00 . 1, 00 0,0 0,0 00 01 an d ab ov e Le s Market Needs & Opportunities in India 50% of the market by 2016 100,000 Demand by price range 250,000 200,000 150,000 Nissan’s share at 0% today 50,000 00,000 $7,500 $10,000 www.nissan-global.com $12,500 $15,000 $17,500 1USD=45.7 INR 8 (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 8 Progress & Goal of Infiniti Business Premium Market Analysis Premium brands account for 11% of total light-vehicle sales. But represent 50% of industry profits www.nissan-global.com Infiniti Q50 world debut at Detroit auto show 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 SVP of NML in charge of global Infiniti since last July. Served as president of Audi’s American operation Daniel VP of Infiniti Americas since this September. Served as COO of Porsche Cars North America www.nissan-global.com Managing Director of Infiniti China since this May Served as Previous vice president of BMW’s joint venture in China Speaks fluent Chinese (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 11 Adapting to the changing environment alone is tough Investment Customers needs Growth of emerging countries Speed Diverse green technologies Shift toward smaller / cheaper cars Connections with governments + IT changes to automobile society Human resources 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 on local insights Partnership Capitalize on local talents Complement technologies Complementarity Synergy www.nissan-global.com Alternative Offset (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 Vehicle type Engine compartment MPV SUV FR under body Cockpit Electrical & Electronics architecture RR under body Heavy weight High Position Heavy weight Middle weight Middle Position Middle weight Light weight Low Position Light weight High hood SED H/B Low hood 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. Challenges to develop sustainable mobility Social Value www.nissan-global.com Vision (Goal) Leadership Strategy (Solution) (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 17 Challenges by Nissan WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 18 Challenges by Nissan WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 19 Challenges to Develop Sustainable Mobility Energy Global warming A Fossil fuels Air pollution Accidents h b Emission WWW.nissan-global.com Safety (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 20 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. 2013 All rights reserved. 21 2 Approaches of Leadership Strategy Energy Global warming Air pollution Accidents Electrification Vehicle Intelligence A h b WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 22 Electrification for Zero emission Energy Global warming A Air pollution 交通事故 Accidents h b WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 23 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 WWW.nissan-global.com Electric Vehicle (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 24 100% EV Nissan LEAF Launched in December 2010 WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 25 Nissan LEAF Users’ Voice WWW.nissan-global.com 26 Compelling Attributes of EV Home charging Inexpensive electricity Ultimate quietness Zero emission Agility Around-the-clock connected services WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 27 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 FY10 Switch EV Project in U.K. FY11 FY12 FY13 FCST WWW.nissan-global.com EUR (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 28 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. 2013 All rights reserved. 29 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. 2013 All rights reserved. 30 EV for Energy Storage Using EV as energy storage enables practical use of renewable energy. sunlight EV wind water WWW.nissan-global.com 電 気 Store electricity (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 31 Connect with power grid IT network エネルギー 温暖化 出典: NASA earth observatory (http://www.nasa.gov/vision/earth/environment/arcticice_decline.html) 交通事故 People 渋滞 Power grid WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 32 Power Storage Capacity EV Battery Capacity 1 Power Consumption 24 kWh Average Household 10 kWh/day Approx.10 MWh Nissan GHQ 10MWh/day 400 22,000 Approx.530 MWh WWW.nissan-global.com Nishi-ku, Yokohama (53,000 households) 530MWh/day (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 33 Nissan LEAF’s Value as Storage Battery Storage battery capacity(kWh)/price(¥) Power supply capacity of a LEAF(24KWh) 400 単位(万円) Storage battery for household use on the market LEAF has ¥7 million value as storage battery (excluding vehicle value) 300 200 Nissan100 LEAF 24kWh/2980K Yen For about 160 Days For about 29 Days For about 10 Days WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 34 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. 2013 All rights reserved. 35 Power Saving Initiative with Nissan LEAF Annual saving (¥10,000) A trial in Osaka Prefecture delivered expected results. ¥48,000 5 4 3 2 ¥20,000 1 0 Annual driving distance Annual driving distance 7,000km 12,000km WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 36 Real-world Evaluation at NATC (Nissan Advanced Technical Center) Peak shaving by EV commuters charging discharging WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 37 V2B (Vehicle to Building) EVs parked at the office supply electricity and contribute to peak shaving EVs are charged by the time when an employee leaves ピークカットの考え方 ( オフィスビル ) Peak shaving scheme (office building) Power consumption 勤務時間 Working hours 3 6 1 2 3 B B B V V V 9 12 15 EV battery status Arrival 18 21 o’clock Departure charging discharging WWW.nissan-global.com charging (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 38 Leveling Power Consumption with EV If 10% of cars in Japan are replaced with EV, it results in 5% peak shaving [ GW ] 200 Power (total of 10 utility companies around Japan) discharging 5% reduction 100 charging Charging for driving 時間 Time WWW.nissan-global.com Source: Nissan Motor (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 39 In Pursuit of Smart Community Big-scale real-world evaluation is underway around the world Holland Amsterdam Amsterdam city England Low Carbon London EDISON Project Spain Yokohama city , Toyota city etc. Testing next-generation energy & social system China Smart City Málaga Colorado Japan Denmark ECO-CITY WWW.nissan-global.com Korea Jeju Smart Grid Smart Grid City Hawaii Island project Texas Pecan Street Project (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 40 Proposal of New Mobility “Choimobi “ Yokohama city revolutionary clean safe OAL×OAW×OAH Capacity Max speed Weight Output Range Charging method/time : 2340 × 1230 × 1450 (mm) : 2 persons (in the front & the rear) : approx. 80km/h : 470kg(w/ doors) 500kg(w/out doors) : rated power 8kW, max.15kW : approx. 100km : standard 200V, approx.4 hrs accessible WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 41 Vehicle Intelligence for Zero Fatality Energy Global Warming A 大気汚染 Traffic accident h b WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 42 Traffic Fatalities More than 1.2 million people die in traffic accidents around the world. 1 India 126 2 China 67 3 US 34 4 Russia 26 5 S. Africa 13 13 Japan 4 ・・・ Rank fatalities (1000 people) #of fatal accidents in Japan peaked in 1970 and is on the decline. Yet over 4,000 people die every year. History of traffic fatalities in Japan 16,765 4411 Declining 12 yrs in a row <2009 WHO > www.nissan-global.com www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 43 43 Economic loss inflicted by traffic accidents around the world Approx. ¥60 tril. / year ※Estimated by Nissan Research Cen WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 44 Economic costs of road traffic congestion 非効率時間/ストレスからの解放 Approx. 44 tril. / year ※Estimated by Nissan Research Cente 駐車場所の探索 WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 45 Economic opportunity of autonomous driving (per year) Accident loss ¥60tril Congestion loss¥44tril ¥104tril.* Equivalent to 2% of global GDP (equivalent to GDP of South Korea) WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 46 Impediment to safety More than 90% of traffic accidents are caused by human errors Driver Others 93% WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 47 3 Factors of Vehicle Intelligence recognition judgment WWW.nissan-global.com action (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 48 Application of State-of-the-art Technologies 100 times more capable than a human being in terms of “recognition,” “judgment,” and “action” 判断 Judgment 104 [T FLOPS] Processing Speed 103 102 101 Frame rate 02 01 [fps] 103 認知 03 102 Recognition WWW.nissan-global.com 10-1 Response 10-2 10-3 [s] 操作 Action (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 49 Better Recognition High speed camera recognizes images in slow motion WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 50 Affinity between EV and autonomous driving Motor generates maximum torque in low-speed revolution zone. Inverter control ensures quick acceleration and sharp response in whole speed range. Motor Inverter Output torque [Nm] acceleration [G] Vehicle speed (km/h) EV ICE responsiveness time [sec] WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 51 Value of Vehicle Intelligence(VTR) Safe mobility for everyone through autonomous driving 自動運転のデモ動画 WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 52 Silicon Valley Office, Nissan Research Center opened in 2013 WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 53 Autonomous driving technologies will be applied to multiple models by 2020 The first proving ground specifically designed for autonomous driving vehicle is under construction in Japan. Laser scanner FR Camera Laser scanner Laser scanner Laser scanner AVM Camera Laser scanner WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 54 Car becomes your partner Source : Wikimedia Commons WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 55 WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 56