Nissan Motors to roll out new EV models in Hong Kong as sales slow in mainland China
Japanese carmaker Nissan Motors plans to roll out new electric vehicle models into the Hong Kong market and to expand its presence by targeting the city's tech-savvy drivers with new technologies and battery technologies.
The move follows recent setbacks for Japan's top carmakers in the mainland market where their first half sales plunged by a fifth in a market with fast-changing customer demands.
"It is an interesting market where we are able to try new technologies and the people are willing to try new technologies," said Nissan's Asean president Isao Sekiguchi, in an interview.
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The Japanese carmaker plans to launch two new EV models in Hong Kong within a year, including a sport-utility vehicle (SUV) and a small electric van, to "stay on top of the competition in one of the important markets that we foresee going forward," he said.
Photo shows the driving cab of the "Nissan LEAF" electric vehicle (EV) in Hong Kong, south China. The "Nissan LEAF" EV, is a 5- seat electric saloon car with a maximum speed of 145km/h and a driving range of over 160km per full charge. Photo: Xinhua alt=Photo shows the driving cab of the "Nissan LEAF" electric vehicle (EV) in Hong Kong, south China. The "Nissan LEAF" EV, is a 5- seat electric saloon car with a maximum speed of 145km/h and a driving range of over 160km per full charge. Photo: Xinhua>
The latest data from the Transport Department shows that as of June, Hong Kong had 59,796 registered plug-in EVs, an 84 per cent increase from 32,493 a year ago. EVs make up 9.2 per cent of the city's private cars, according to data from the Transport Department.
"Our plan is to intensify and strengthen the pure 100 per cent electric vehicle line-up here in Hong Kong," said Sekiguchi. "Hopefully, we can bring more [EVs to Hong Kong] in the future."
Among the models that Nissan plans to bring into Hong Kong are a new flagship electric SUV, first unveiled in Japan in July 2020. The SUV sells for US$43,190, according to the carmaker's US website.
Nissan also plans to bring a new model of a small electric van to Hong Kong within a year.
Nissan's all electric hatchback Leaf, first unveiled in 2009, is currently the brand's only pure EV model available for sale in Hong Kong, with prices starting from HK$269,800 (US$34,591) on its website.
The plans for new launches emerge as the company's deliveries of conventional cars on mainland China slumped 24.4 per cent in the first half of the year to 358,509 units, according to industry data provider MarkLines. Sales figures of EVs by the Japanese carmakers in China are not available.
But analysts are confident of the company's ability to bounce back.
"Nissan appears aware of the critical situation surrounding its survival in China," said Citigroup analysts in a note. "We expect it to announce survival and growth measures this autumn."
In the future Nissan hopes to use new features like a driver assistance technology designed for highway use which enables hands-free driving along a predefined route, and an all solid state battery which has the potential to shorten the charging time and lengthen battery life.
"Our strategy for Hong Kong is to bring accessible EVs as much as possible, whether it's an SUV or it's a hatchback like Leaf, or for commercial use, represented by the small electric van model," said Sekiguchi.
"Some iconic models that we used to have with a conventional petrol engine will convert into EV. So some exciting models are already in the pipeline, and Hong Kong is definitely on the list for their market expansion."
The Hong Kong government outlined plans two years ago to encourage EVs, and in last year's policy address, Chief Executive John Lee Ka-chiu said the government would cease registering new fuel‑propelled and hybrid private cars in 2035 or earlier.
While the roll-out and adaptation of electric vehicles in Hong Kong is speeding up, much needs to be done on the infrastructure front. As of March 2023, there were only 5,775 EV chargers for public use in Hong Kong, including 3,307 medium-sized chargers and 1,015 quick chargers, according to data from the government's Environmental Protection Department. While this is roughly in line with the global average ratios of EVs to charging stations, there are several advanced markets with lower ratios. The government has pledged to expand private charging facilities for EVs to 150,000 and public chargers to 5,000 within four years amid concerns that the ratio of chargers to EVs was low, which could ruin the progress of encouraging residents to switch from fossil fuel cars.
The government has also rolled out a HK$3.5 billion "EV-charging at Home Subsidy Scheme" to subsidise the installation of EV charging-enabling infrastructure in car parks of existing private residential buildings.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2023 South China Morning Post Publishers Ltd. All rights reserved.
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