People around the world are making a switch from internal combustion engine (ICE) cars to electric vehicles (EV). Even some automobile manufacturers like Audi have stopped developing new internal combustion engines.
Also, Germany’s top legislative body, the Bundesrat, has planned to allow only zero-emission vehicles on EU roads by 2030. ICEs seem to be reaching their expiry date in the auto industry.
It was also reported by Nikkei Asia that Nissan will put a nail in the ICEs’ coffin this time by ending up developing new combustion engines for the global market, except for the United States, and shifting its focus on electric vehicles. This has made it the first major Japanese carmaker to make such a decision.
Japan’s automobile manufacturer has already stopped the development of gasoline engines for the European market since the upcoming Euro 7 emissions standards, which are planned to go into effect until 2025. The company states the Euro 7 rules will increase the R&D costs of future gas and diesel engines.
In addition, the development of combustion engines for Chinese and Japanese markets will be phased out too and the already existing engine plants will be adapted to develop engines for hybrid vehicles.
However, for the United States, the company will reduce its annual investments in engine R&D, but it will keep on developing new gas engines mostly for the truck and SUV markets, where it awaits a high demand for traditional-powered vehicles. Most of the budget will be allocated to the development of new electric powertrains and vehicles.
There are still debates in progress stating if the electrical vehicles will result in impacting the environment more negatively. Nevertheless, automakers are shifting towards electrical.