‘POWERLESS E-POWER’ Why is Nissan e-Power facing a downward spiral?

Despite early success in the Japanese market, Nissan's new e-Power technology has struggled to gain appeal due to several factors and a lack of network. There is now stiff competition from more established hybrid and electric vehicle manufacturers, including BYD and Tesla, that dominate the car manufacturing industry. 

As the automotive industry shifts towards full electrification, Nissan's e-Power hybrid approach appears to be less competitive compared to other vehicles.

Nissan’s electrification system downfall

Nissan's e-Power was launched in 2018 which was essentially a 'serial hybrid system' using a drive train configuration battery to power the motor for the driving wheels. Due to the innovation of e-Power Nissan Note beat the Toyota Prius as Japan's top-selling car, where Nissan sold 200,000 units of the vehicle. 

Car Guide PH's findings revealed that 70% of Nissan Note owners choose the e-POWER system because of its smooth and instant acceleration, as well as agile performance. 

However, according to Automotive News, e-Power is why Nissan is currently facing its manufacturing challenges despite being a 'great promise' since they 'did not capitalize' on the success and have 'yet to replicate' it ever since.

Zero Trust in the System

Nissan developed another version of the e-Power, including a high-tech turbocharged engine because of its drive to spread the hybrid technology to America with high-end vehicles and make e-Power the backbone of 'electrification.'

However, despite the United States (US) being Nissan’s most important market, e-Power is only available in the Japanese domestic market due to the US not having confidence in the new technology. 

“The setup didn’t provide enough charge for high-speed, long-distance highways, they [American product planners] said. Moreover, U.S. drivers were vexed by the decoupled feeling between the all-electric acceleration and the on-again, off-again engine generator,” one of the North American executives said. 

The executive also added that the US team was ‘not convinced that the electrification system was good, citing that the consumers are ‘not yet ready’ due to its conservative approach.

Cutting Corners

Nissan has decided to cut 9,000 vehicle jobs around the world and production by 25% due to the limited free cash flow of the company. Even after the US declared its zero trust in Nissan's e-Power, the company still pushes its introduction to the US market but only by 2026.

However, according to a report from Inside EV, one way for Nissan to dominate the US market is by coordinating with another Chinese manufacturer who also wanted to cover a wider market. 

Sanshiro Fukao, executive fellow at the Itochu Research Institute’s Center for Industry Research cited that other electric vehicle automakers like Nio, Xpeng, or BYD can be Nissan's partner to reenter the auto industry.