ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Automobiles

Nissan picks Japan, not Britain, to make Ariya electric car for EU

No-deal Brexit risk dashes Sunderland plant's hopes of exporting new model

The Ariya will be Nissan Motor's first global electric vehicle in over 10 years. (Photo by Kosuke Terai)

TOKYO -- Nissan Motor has decided against manufacturing its newest electric vehicle in the U.K. for sale in the European Union, Nikkei has learned, over concerns that the automobile will face higher tariffs in the absence of a post-Brexit trade deal.

Instead, Nissan will ship the Ariya from Japan when the vehicle goes on sale in the EU next year.

Nissan initially considered making the Ariya at its Sunderland assembly plant in Britain. But London and Brussels have yet to sign a free trade agreement, even with the British exit from the EU set to be finalized at the end of the month.

Under a no-deal Brexit, British auto exports to the EU face a 10% tariff.

Japanese-made autos face only a 7.5% import tariff under the economic partnership agreement Tokyo signed with the EU, and the trade deal will abolish that duty in 2026.

Japan's EPA with Britain takes effect next month. It will abolish the auto tariff in a similar manner as the Japan-EU trade deal.

These circumstances led Nissan to decide in favor of exporting the Ariya from Japan for the time being.

The Ariya is the first new global EV from the Japanese automaker since the Leaf debuted a decade ago. The model will be sold in phases next year in Japan, Western markets and in China.

Ariyas bound for Europe and the U.S. will be made at Nissan's assembly plant in Japan's Tochigi Prefecture, north of Tokyo. Those sold in China will be manufactured locally.

Japanese companies in the U.K. are contending with Brexit-related risks ahead of the Dec. 31 end of the transition period. Honda Motor suspended operations at its Swindon plant for three days through Friday last week because of delays in parts delivery via containership.

Europe is shifting toward electrified vehicles. The U.K. will ban new sales of gasoline-only autos in 2030, while France will do the same in 2040. The EU has set a goal of having at least 30 million zero-emissions vehicles by 2030.

Nissan will direct that demand for EVs to Japanese production and develop the local supply chain for electrics.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more