Nissan has started the production of its latest electric car in Sunderland, a crucial step in the UK automotive industry’s transition away from petrol and diesel.
The Japanese manufacturer will launch the third generation of the Leaf on Tuesday, which was the first mass-market battery electric car to be built in the UK. Nissan has made 282,704 Leaf models at the north-east England plant so far.
Nissan said it has invested more than £450m into manufacturing the new Leaf, including more than £300m directly into the company’s UK operations. Chris McDonald, the industry minister, will visit the factory on Tuesday.
The site is Britain’s biggest car factory, with 6,000 employees and the theoretical ability to make 600,000 cars a year. However, the factory only made 284,000 in 2024, according to the data company MarkLines, amid a difficult period for European manufacturers.
Sales of the new Leaf will be important in securing the future of production across the rest of the plant. In 2023, Nissan said it was considering building another two electric cars in Sunderland. Those cars are seen as replacements for the petrol Qashqai SUV and Juke crossover that are made there, but Nissan has not yet made a final investment decision.
Going forward with the later models will be vital for the future of a next-door battery factory run by the manufacturer AESC, which is majority-owned by a Chinese company.
The Leaf investment comes as Nissan is going through the painful process of shutting seven factories and cutting 20,000 jobs worldwide. Nissan overexpanded in an effort to become the world’s largest carmaker but it has faced years of leadership turmoil and intense competition, including from newer Chinese rivals.
Sunderland will not be hit by the closures. However, Nissan’s chief executive, Ivan Espinosa, who was tasked this year with turning the company around, said in May that the carmaker would consider building cars in Sunderland for China’s Dongfeng, its partner in a joint venture in the Chinese city of Wuhan.
Peter Kyle, the business secretary said: “Sunderland is the beating heart of the UK’s automotive industry, and Nissan’s investment is a major commitment to the north-east and a huge vote of confidence in our economy.”
Nissan’s vice-president for manufacturing at the plant, Adam Pennick, added: “There is huge pride and excitement in our team to be building this brilliant car in Sunderland.”
The UK government has confirmed that the Leaf will qualify for the full £3,750 electric car grant. The car will have a range of up to 386 miles per charge with a bigger, 75 kilowatt-hour battery.
