Nissan has announced plans to invest £170 million to produce a new hybrid SUV, the Kicks, at its Sunderland plant in the United Kingdom, contingent on changes to the country’s electric vehicle (EV) sales targets. The move is part of Nissan’s effort to sustain operations at its largest UK factory, which currently operates at roughly 50% capacity and employs about 6,000 people.
The Kicks model, already sold in over 70 markets but never previously manufactured in Europe, will become the fourth Nissan vehicle — alongside the Qashqai, Juke, and Leaf — produced at Sunderland. While the investment is framed as a measure to secure and maintain existing jobs rather than create new ones, it signals a significant development amid challenges facing the UK automotive industry, including higher US tariffs, rising energy costs, and intensified competition from Chinese manufacturers.
Massimiliano Messina, Nissan’s regional chair for Africa, the Middle East, India, Europe, and Oceania, emphasized that the investment depends on the UK government lowering the current Zero Emission Vehicles (ZEV) sales mandate. This mandate requires 80% of new cars sold by 2030 to be all-electric, a target under government review following lobbying from manufacturers. The UK is considering reducing the target to as low as 50%, with a consultation period open until late October.
Messina expressed cautious optimism about the potential amendments, stating Nissan prefers a 50% target and is hopeful that such a revision will be implemented. “We try to assess always if this is more likely than unlikely,” he remarked regarding the likelihood of the target being eased. He also indicated ongoing discussions with the government to secure the future of the Sunderland plant under the revised regulatory environment.
In parallel, Nissan is negotiating a production-sharing agreement with Chinese carmaker Chery, which aims to manufacture its own vehicles at the Sunderland facility to improve its utilization rate. Messina noted that Chery is the “first in the line” for this partnership but that other potential collaborators are being considered to ensure the plant’s viability. The company is actively working to finalize details on volumes and model lineups with Chery.
The investment comes amid Nissan’s efforts to address challenges stemming from the European Union’s “Made in Europe” regulations, which require vehicles to be manufactured within the EU to qualify for subsidies, tax breaks, and public contracts. These rules have prompted concerns that UK-built cars might be excluded from benefits after Brexit, potentially threatening Sunderland's future. Nissan has been lobbying for the UK to be included in the framework or granted special considerations.
Business Secretary Jonathan Reynolds welcomed Nissan’s announcement, describing it as a “huge vote of confidence in the UK’s manufacturing expertise and automotive future.” The UK auto sector has recently faced setbacks, including job cuts announced by Jaguar Land Rover, highlighting the significance of Nissan’s investment.
Separately, London Electric Vehicle Company (LEVC), owned by Chinese conglomerate Geely, disclosed plans to launch a next-generation electric taxi model in 2027, to be built at its Ansty factory near Coventry, updating its current all-electric TX range introduced in 2018.
Overall, Nissan’s investment reflects broader struggles and strategic adjustments within the UK car industry as it navigates evolving domestic policies, international trade pressures, and competition from global players.