
Despite being one of the first automakers on the scene with the all-electric Nissan Leaf, the Japanese automaker has been slow to launch its new flagship model, the Ariya. The electric SUV was unveiled in July 2020 and was going to be launched in the middle of 2021, but the COVID-19 pandemic delayed the launch. Deliveries of the Ariya just began late last year. It’s 2023 and the Ariya is still hard to find. Apparently, finding a 2023 Nissan Ariya will continue to be a difficult task this year, as the automaker is reportedly dealing with the high costs of battery materials.
Automotive News reports that Nissan warned dealers of the limited availability of the Ariya this year, citing high battery costs. Nissan didn’t provide the outlet with specifics behind allocations of the Ariya in the U.S., but an unnamed source that’s familiar with the matter stated that roughly 6,000 Ariya EVs were allocated for the fiscal 2022 year, which ends on March 31, 2023. Of those models, 4,500 of them are built.
Nissan is expected to increase Ariya production this year, as the brand is estimating that it will have 30,000 units for fiscal 2023. But boosting production won’t happen immediately, as raising output is expected to be a challenge.
Judy Wheeler, Nissan’s U.S. vice president of sales and regional operations, told Auto News that the cost and availability of battery components would make it difficult for Nissan to increase how many Ariyas it can build. According to Wheeler, the price of these commodities has “tripled and quadrupled” and that the price increases “will make it difficult for U.S. manufacturers.”
Some dealers, as the outlet claims, are frustrated with Nissan’s slow rollout of the Ariya, which is set to be positioned as the automaker’s halo EV. Dealerships questioned when Nissan would be able to send more Ariyas to deliver to waiting customers. “Every dealer was saying how many customers they have waiting or wanting to order one,” Nissan Dealer Advisory Board Chairman Tyler Slade told Auto News.
Slade, an operating partner at Tim Dahle Nissan Southtowne in Salt Lake City, stated that his dealership has received interest from roughly 100 customers. Some of them have placed a deposit down for the vehicle. Another dealer at the NADA meeting claimed that he was “shocked and deflated” by the lack of available Ariya inventory.
“Why can’t we produce the Ariya in any acceptable volume?” questioned the dealer. “Customers are walking in saying, ‘I’m sold, let me buy one,” said the dealer, “but we can’t tell them when it’s coming.”
Slade doesn’t see an issue with limited inventory. According to him, it creates more demand than supply, which “holds transaction prices.”
Nissan’s struggles with bringing the Ariya to dealerships in large enough quantities to meet demand highlights issues automakers are having with high materials costs and supply chain issues. With Tesla and Ford reducing prices for its electric vehicles recently, Nissan is on a tight timeline to get the Ariya to interested customers or risk losing them to competitors that are more readily available.
Source: Automotive News (Subscription Required)