Nissan's £1bn investment in UK electric cars

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【Summary】Nissan plans to invest over £1 billion in the UK to produce electric versions of its Qashqai and Juke models in Sunderland. This move is supported by UK government financial aid and aims to secure 6,000 jobs. Nissan's decision reflects the UK's ambition to lead in the production of electric vehicles, despite delaying the ban on the sale of petrol and diesel cars until 2035. However, there are concerns about the potential impact of customs duties on electric cars after Brexit.

FutureCar Staff Nov 23, 2023 3:14 PM PT

Nissan's £1bn investment in UK electric cars

Japanese auto giant Nissan is set to announce tomorrow its commitment to building electric models of its popular Qashqai and Juke vehicles in Sunderland, northeastern England. This investment of over £1 billion (RM5.8 billion) is expected to secure the future of 6,000 jobs at Nissan's largest European facility. The UK government has reportedly provided financial support, potentially amounting to hundreds of millions of pounds, to aid Nissan's decision.

Prime Minister Rishi Sunak is anticipated to attend the announcement at the Sunderland factory, where Nissan CEO Makoto Uchida will make the announcement. The move towards electric vehicle production aligns with Britain's ambition to become a leader in the electric car industry as part of its commitment to reducing carbon emissions.

Although the UK government recently delayed the ban on the sale of petrol and diesel cars to 2035, the country's car manufacturing sector, which is largely foreign-owned, will still need to transition to producing fully-electric vehicles. Nissan had previously expressed concerns about the Sunderland site's future in the event of a no-deal Brexit, but those concerns were allayed after a trade deal was reached.

However, the Society of Motor Manufacturers and Traders warned last month that automakers could face a 10% increase in customs duties on electric cars crossing the Channel. This could pose challenges for the industry as electric car batteries, which often originate from China, can represent a significant portion of the sale price. To be exempt from customs duties, at least 45% of the value of vehicle parts must originate from Britain or the European Union starting from January 1, 2024, as stipulated in the free trade agreement between the UK and the EU.

Despite these challenges, Nissan's commitment to producing electric vehicles in Sunderland is a positive step towards the UK's goal of becoming a leader in the electric car industry. The investment not only secures thousands of jobs but also demonstrates the government's support for the transition to cleaner transportation.