Nissan to streamline domestic production, make minivans at Tochigi plant
Nissan Motor Co. will transfer production of its Serena and Elgrand minivan models from Kyushu plants to its Tochigi facility, aiming to consolidate similar models and improve efficiency. This move comes as the Tochigi plant, which also produces EVs like the Leaf and higher-end gasoline vehicles, has seen declining capacity utilization. The automaker plans to complete this shift within several years. Nissan seeks to increase its domestic production to approximately 1 million units annually, a 40 percent rise from fiscal 2025 levels, supported by growth in both domestic sales and exports. The transfer of these two minivan models is expected to significantly boost output at the Tochigi plant, which produced around 30,000 vehicles in the last business year.
Nissan's decision to shift minivan production to its Tochigi plant reflects a broader strategy to optimize manufacturing efficiency in Japan. The Tochigi facility, currently an EV production hub, will see its output significantly boosted by the addition of the Serena and Elgrand models, which could help offset slower EV growth. This consolidation aims to improve capacity utilization and support Nissan's goal of increasing domestic production by 40 percent from fiscal 2025, reaching roughly 1 million units annually. The move is part of Nissan's ongoing restructuring efforts, which include closing seven plants globally. While the focus is on efficiency, the challenge for Nissan will be integrating diverse production lines effectively at Tochigi while maintaining quality and managing any potential labor impacts from plant closures in Kyushu and Kanagawa. The company has not specified a timeline for achieving its 1 million-unit production target, making its execution a key point to watch for the Japanese automotive sector.
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