Nissan - Coming Back To EV Race: The Dilemma Of Resource Allocation
To remain competitive in the rapidly evolving EV industry, Nissan faces two interconnected resource allocation dilemmas: one concerning technology investment and the other concerning the extent of organizational collaboration.
At a glance
Country
Japan
Industry
Automotive
Revenue
JPY 12.0 trillion
(US$74.4 billion, FY2025)
Global Vehicle Sales
3.15 million units
(FY2025)
Abstract
Once a pioneer, Nissan Motor now lags behind and has even fallen out of the top ten global automakers, facing a critical dilemma of resource allocation at both technological and corporate levels in the rapidly evolving electric vehicle (EV) industry. This case study, an updated version of the original 2023 version, examines how Nissan’s early leadership in the EV market, anchored by the Nissan LEAF, has been eroded by intensifying global competition, capital constraints, and repeated organizational and financial disruptions.
Despite ongoing restructuring under its Re:Nissan plan and a strategic shift toward portfolio diversification across internal combustion, hybrid, and electric vehicles, Nissan continues to face severe limitations in funding next-generation technologies such as software-defined vehicles (SDVs), artificial intelligence, autonomous driving systems, and advanced battery development. At the same time, the company confronts a parallel strategic tension between preserving corporate autonomy, evidenced by its rejection of full merger proposals such as the Honda integration, and deepening interdependence through strategic alliances that could provide access to critical resources and capabilities. The case study highlights how autonomy enables control over brand identity and strategic direction, while interdependence offers scale, knowledge sharing, and cost advantages but introduces coordination complexity and dependency risks. It argues that Nissan’s competitive future depends on how effectively it manages this dual resource allocation dilemma across both technological investment priorities and the structure of its external collaborations in an increasingly capital-intensive and technologically convergent automotive industry.
Keywords: Strategic management, resource allocation, strategic alliances, automotive industry, electric vehicles (EVs)
Disclaimers:
(1) Regarding Case Study Content: This case study is based mainly on secondary data and analysis of publicly available information unless otherwise stated, and is intended solely for educational purposes. Any opinions expressed by the author(s) are designed to facilitate learning discussion and do not serve to illustrate the effectiveness of the company. Additionally, banner images and logos used in the case study are intended for visualization in an educational setting and it is not used to represent or brand the company. For any dispute regarding the content and usage of images and logos, please contact the team.
(2) Regarding University Affiliation and Titles of Authors: The university affiliation and titles of author(s) seen in the case study is based on their affiliation and title during the time of publication. It may or may not represent the current status of said author(s).
