Nissan Motor Welcomes Tesla Model 3 As ‘Good Competition’

Apr 07, 2016 04:00 AM EDT | Vlad Tverdohleb

Carlos Ghosn, CEO at Nissan Motors, declared that his company welcomes the competition from Tesla. Considering the amount of reservations made by consumers for the Tesla Model 3, would be expected that its success would worry other car companies. But the executive at Nissan has actually taken the opposite view.

Mr Ghosn believes that the demand for Tesla Model 3 will also give a boost to the demand for Nissan's EV. Instead of being worried about the competition coming from Tesla, Nissan CEO is planning a strategy to transform it in a market advantage for its company.

The base price for the Model 3 is competitive with Nissan's Leaf, Hybrid Cars reported. That means Tesla Model 3 will fight with the Leaf for buyers, while Nissan Motors will increase its focus on EVs.

The same publication reports that during a visit to an engine plant in Japan, Mr Ghosn told the media that he sees as a good sign the fact that consumers are willing to pay a down payment to pre-order Tesla Model 3 cars that will become available only at the end of 2017.  He added that "finally, good competition for EVs is picking up."

Up to date Tesla Motors took over a quarter-million pre-orders for the Model 3. The refundable down payment is $1,000 a piece. The quarter-million figure is more than the combined aggregate sales for Tesla Model X and Model S between the years 2012 and 2015, according to Auto News.

On the other side, Nissan Motors and Renault, its French partner, have sold record numbers of EVs worldwide. Since its introduction in 2010, the Leaf alone has sold more than 200,000 units.

According to Mr Ghosn, the increased competition will not only increase consumer interest in EVs but also push Nissan to develop better EVs. Nissan Motors is already working on cutting costs involved with EV production, increasing the range of the next Leaf and improving charging infrastructure.

Mr Ghosn declared that competition can expand the market and stimulate the demand. The Nissan executive is aiming to transform electric cars in a pillar of Nissan's corporate strategy.

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