Is Nissan Starting Production of the New Leaf in the UK?

Nissan has begun production of its new electric Leaf at its Sunderland factory, marking the first high-volume car manufacturing activity in the UK since 2020. The launch of this third-generation Leaf reinforces Nissan's commitment to the UK's automotive industry, supported by a substantial investment of over £450 million. With a range of up to 375 miles (604 km) on a single charge and eligibility for a £3,750 government grant, the Leaf positions itself as a key player in the electric vehicle market.

Last updated: 27 October 2023 (BST)

What’s happening now

Nissan's Sunderland factory has officially started production of the new electric Leaf, making it a significant milestone for the UK's automotive sector. This development is particularly notable as it is the first new high-volume vehicle to be manufactured in the country in over three years. With this initiative, Nissan aims to enhance its production capabilities and expand its electric vehicle offerings, catering to the growing demand for sustainable transport options.

Key takeaways

Nissan has invested over £450 million in its Sunderland factory for the new Leaf.
The Leaf has a range of up to 375 miles (604 km) on a single charge.
Eligible for a £3,750 government grant, the Leaf aims to attract eco-conscious consumers.

Timeline: how we got here

The journey towards the production of the new Nissan Leaf includes several key milestones:

2011: The first-generation Nissan Leaf launched in the UK.
2020: Production of high-volume cars in the UK halted, marking a significant downturn in the automotive industry.
2023: Nissan announces a £450 million investment in Sunderland to launch the third generation of the Leaf.
October 2023: Production of the new Leaf officially begins at the Sunderland factory.

What’s new vs what’s known

New today/this week

The recent commencement of Leaf production in Sunderland is a fresh development, signalling a renewed focus on electric vehicles in the UK. The investment and production are viewed as a testament to Nissan's long-term strategy in the region, despite recent challenges faced by the automotive industry.

What was already established

The Leaf has been a staple in Nissan's electric vehicle lineup since 2011. The new generation is expected to carry forward the legacy with improved features, including an extended range and modern technology aimed at enhancing user experience. The previous models have set benchmarks in electric vehicle sales, making it a well-known name in the EV market.

Impact for the UK

Consumers and households

The launch of the new Leaf is likely to have a positive impact on consumers interested in electric vehicles. With a competitive range and government incentives, the Leaf becomes an attractive option for those making the switch to greener transport. The production may also lead to lower prices over time due to increased competition in the electric vehicle market.

Businesses and jobs

Nissan's investment is expected to bolster job security and create new positions within the Sunderland factory, where approximately 6,000 workers are already employed. The enhanced production capabilities may also stimulate local suppliers and related businesses in the automotive supply chain, leading to broader economic benefits for the North East region.

Policy and regulation

The UK's automotive landscape is influenced by government policies promoting electric vehicle adoption. The recent commitment of £50 million in new funding for the North East's automotive sector aligns with the government's agenda to transition towards greener technologies. However, political discussions surrounding the future of petrol and diesel vehicle sales may possibly reshape the industry landscape in the coming years.

Numbers that matter

£450 million: Amount invested by Nissan for the new Leaf production in Sunderland.
375 miles (604 km): Maximum range of the new Leaf on a single charge.
£3,750: Value of the government grant available for consumers purchasing the Leaf.
6,000: Number of workers employed at Nissan's Sunderland factory.
£50 million: New funding for the North East's automotive sector announced by the government.

Definitions and jargon buster

Electric Vehicle (EV): A vehicle that is powered by electric motors and batteries, rather than internal combustion engines.
SUV: Sport Utility Vehicle, a category of vehicles known for their higher ground clearance and off-road capabilities.
Government Grant: Financial aid provided by the government to incentivise consumers for purchasing electric vehicles.

How to think about the next steps

Near term (0–4 weeks)

Consumers interested in the new Nissan Leaf should consider the financial incentives available through government grants. Additionally, keeping an eye on local dealerships for promotional offers could provide further savings.

Medium term (1–6 months)

As production ramps up, the availability of the Leaf is expected to increase. Consumers may find greater access to test drives and promotional events aimed at showcasing the vehicle’s features and benefits.

Signals to watch

Sales figures for the new Leaf in the UK market.
Responses from competitors in the electric vehicle sector.
Government announcements regarding future electric vehicle policies.

Practical guidance

Do

Research the features and range of the new Nissan Leaf to ensure it meets your driving needs.
Take advantage of government grants and incentives for electric vehicle purchases.
Stay informed about local charging infrastructure to support owning an electric vehicle.

Don’t

Don’t overlook the potential savings from switching to an electric vehicle.
Don’t hesitate to ask local dealerships about test drives and special offers.
Don’t dismiss the importance of considering long-term running costs associated with electric vehicles.

Checklist

Verify eligibility for government grants on electric vehicles.
Assess local charging station availability.
Compare the Nissan Leaf against other electric vehicles in terms of range and features.
Calculate potential savings on fuel and maintenance costs.

Risks, caveats, and uncertainties

While the production of the new Nissan Leaf is a positive development, uncertainties remain regarding the broader electric vehicle market and government policies. Political shifts could influence future regulatory frameworks, including the continuation of grants and incentives. Additionally, consumer acceptance of electric vehicles varies, and economic conditions may impact purchasing decisions.

Bottom line

The launch of the new Nissan Leaf at the Sunderland factory signifies a critical moment for the UK's automotive industry. With significant investment and government support, this initiative not only strengthens the local economy but also promotes the transition towards electric vehicles. Consumers should stay informed about available incentives and the evolving landscape of electric vehicle options in the UK.

FAQs

What is the range of the new Nissan Leaf?

The new Nissan Leaf has a range of up to 375 miles (604 km) on a single charge, making it suitable for both daily commuting and longer trips.

How much government grant is available for the Nissan Leaf?

The Nissan Leaf is eligible for a £3,750 purchase discount under the government's electric car grant, helping to reduce the overall cost for buyers.

Where is the Nissan Leaf being produced?

The new Nissan Leaf is being produced at the Sunderland factory, which is the UK's largest car manufacturing facility and employs around 6,000 workers.