Towards the Electric Vehicle World... Nissan to Gradually Halt New Internal Combustion Engine Development

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Japanese automaker Nissan has decided to gradually halt the development of internal combustion engine vehicles that use gasoline and other fuels, considering the trend of tightening emissions regulations.

According to Japan's Nihon Keizai Shimbun on the 8th, Nissan recently finalized its policy to stop developing new internal combustion engines for the European market. It also decided to gradually wind down development projects for the Chinese and Japanese markets, where regulations similar to those in Europe are applied.

Nihon Keizai stated, "Among major Japanese automakers, Nissan is the first to announce a policy to end internal combustion engine development," adding, "Nissan judged that developing engines targeting the European market, where new emissions regulations will be enforced from 2025, is not financially viable."

However, Nissan plans to continue new engine development for the U.S. market, expecting steady demand for engine vehicles, especially pickup trucks.

In markets such as Europe, China, and Japan, which are transitioning to electric vehicles (EVs), Nissan intends to respond to engine vehicle demand by improving existing engines. Nissan, which has invested most of its annual 500 billion yen (approximately 5 trillion won) research and development budget in internal combustion engines and related vehicle fields, plans to focus its R&D efforts on EVs and hybrid vehicles (HVs).

Nissan's decision to halt internal combustion engine development is due to the rapid shift of the automotive market toward electric vehicles. According to British research firm LMC Automotive, last year global passenger car sales of internal combustion engine vehicles reached 67.5 million units, 15 times the scale of electric vehicles, but by 2033, electric vehicle sales are predicted to exceed engine vehicle sales by 20%.

This content was produced with the assistance of AI translation services.