Nissan’s Hybrid Kicks to Boost UK Production

Nissan will introduce its Kicks crossover to Europe, powered by a hybrid engine. The company plans to manufacture the vehicle at its Sunderland plant, following a £170 million investment.

The B-segment car, launched in 2016, initially targeted the Brazilian market. Its second-generation model, released in 2024, is currently produced in Brazil, Japan, and Mexico.

A boost for Sunderland

While the Kicks has never been available in Europe, it is sold in most of Nissan’s other global markets. The Sunderland plant currently produces the Qashqai, Juke, and Leaf models.

The facility will also build the electric next-generation Juke. However, plans for an electric Qashqai have been scrapped, making the arrival of the Kicks a significant boost for the plant.

Hybrid power and platform sharing

The Kicks will be positioned below the Qashqai in Nissan’s lineup of internal combustion engine (ICE) SUVs, replacing the similarly sized ICE-powered Juke, now in its seventh year on sale.

The international version of the Kicks measures 4,365 mm in length, slightly longer than the Juke. Both models share the CMF-B platform.

ZEV mandate concerns

Nissan has cautioned that the decision to produce the Kicks in the UK depends on the government relaxing its Zero Emission Vehicle (ZEV) mandate to an acceptable level.

European head Max Messina stated, “A large part of this is subject to the ZEV mandate amendment”, following Nissan’s investment announcement in Sunderland.

The Kicks, powered by a hybridized combustion engine, may face limitations in the UK market after 2030, when 80% of new car sales must be electric. Messina urged the government to reduce this target to 50% or lower, saying, “We expect the mandate to be amended to the level that allows us as a UK manufacturer to be competitive. To us 50% is something that makes sense financially; 40% would be better.”

The government has said it aims to ensure the EV sales mix targets “remain pro-business and grounded in the real world”. EV sales have jumped in recent months, with market share reaching 30% in August after a 28% sales increase.

However, automakers have yet to achieve cost parity between EVs and ICE models. Messina emphasized the need for swift clarity on mandate changes, stating, “Sooner is better, because the sooner we can engage with suppliers to prepare our line in Sunderland to welcome the car”.

Competitive pressures and tariff challenges

Nissan, like other automakers, faces intense competition from Chinese manufacturers offering better-value models with advanced technology. Messina highlighted the need for UK manufacturers to remain competitive, citing disparities in salaries, social charges, and taxes: “We have some competition which is not necessarily paying the same salaries, it’s not paying the same social charges, not paying the same taxes.”

Chinese firms have gained a strong foothold in the UK market, with overall market share exceeding 20% in August, led by the Chery group, MG, and BYD.

The UK’s lack of ‘countervailing’ import tariffs on Chinese-built EVs has allowed Chinese firms to sell higher volumes in the UK compared to the EU. This discrepancy may hinder the UK’s inclusion in the proposed ‘Made in Europe’ regulation changes. Messina commented, “I assume that to have the UK part of the EU, they cannot have a Trojan horse in the UK”.

He emphasized the need for a level playing field, stating, “I would expect that my competitiveness in the UK has to be as good as in France. If we have a distortion in these two markets, clearly it’s going to create issues about where I produce, what I produce and for which market, which is counterintuitive.”

Nissan is also in talks with Chery about a deal for the Chinese giant to build cars in Sunderland, which could result in up to six models being produced at the facility.

UK Business Secretary Jonathan Reynolds welcomed the announcement, stating, “The decision to build this new model in Sunderland is a huge vote of confidence in the UK’s manufacturing expertise and automotive future”.