Nissan Ariya and Leaf will co-exist — two EVs under $40,000, thanks to the EV tax credit

With its Leaf, Nissan is the first mainstream automaker to offer a mass-produced electric vehicle that is widely available in the US.

That was eleven years ago. And while Nissan took a long time to launch a second EV model, the automaker’s Ariya has made it clear that the two models will coexist in the lineup.

The new Ariya, slated for first deliveries this fall, will be offered with a full lineup that includes nine different models. Nissan has detailed four of them so far, with a larger 91 kWh (87 kWh) battery pack and offering an estimated EPA range of up to 300 miles. A standard size 65 kWh (63 kWh) battery pack will be paired with some or all of the other five models and will offer something closer to the current 215 miles (or 226 miles). is being powered by the Nissan Leaf Plus and its big car Package 62 kwh.

Nissan’s e-4orce . all-wheel drive, which fully combines its dual-motor controls with suspension behavior and handling stability, is the star of the lineup and will arrive in late fall. But front-wheel drive models with both packages will start arriving in early fall.

2023 Nissan Ariya (Japanese specifications)

Although Nissan has offered a starting price for models with the large package at $45,950, it is reported that prices for models with the smaller package will start “around $40,000”.

Well, that means the Ariya will cost about the same as the Nissan Leaf Plus, in its popular mid-size SV version, less than two years ago.

While some misunderstand the move that Nissan intends to replace the Leaf with the Ariya, this is not true, Aditya Jairaj, Nissan’s director of electric vehicle marketing and sales strategy in the US, recently emphasized. that Green Car Report.

“Once we have both cars on the market, there will be a specific position for each model,” Jairaj said. “For the Leaf pattern 2022, for example, we repositioned the Leaf; Our position in the lineup has changed a bit. ”

With that “repositioning”, for the 2021 model year, Nissan has reduced the price of the Leaf by more than $4,000. That makes the standard Leaf with the smaller battery a The cheapest electric car in the US market.

Nissan Leaf SL Plus 2021

According to Jairaj, that gap allows customers to tell the difference between the two all-electric models across the entire showroom. “When customers go to a dealership, they will first cross-buy your models, and then cross-buy competitor models — so we have to make sure our product line-up,” he explains. I must be strong.

And that leads to an important point. If a buyer qualifies (through tax liability) for the $7,500 federal EV tax credit, the Leaf’s standard base price is $28,375 and the Leaf Plus’ starting price is $33,375 respectively. are $20,875 and $25,875.

It also means that the base Ariya will sign up for an effective starting price of $33,500 if you can claim the credit.

It’s a bargain next door Tesla Model Y, starting price about 61,000 USD and not eligible for credit. It also competes with the tax credit-eligible base models of Volkswagen ID.4 and Hyundai Ioniq 5. Though an additional base version of the VW ID.4 arriving in 2023 will cut them all, with an expected price tag of around $36,000 before Credit.

2023 Nissan Ariya

Only Tesla and GM vehicles are not eligible for the tax deduction. They’ve long since reached the 200,000 EV qualifying (battery-electric and plug-in hybrid) racing ribbon. Over the next year and a half, Toyota, Ford and Nissan are expected to be the next three automakers to hit 200,000 vehicles, beginning the four-quarter period.

According to analysis from EVAdoption, Toyota will likely get there in Q1 2022, and Ford will get there in Q3 2022 (or earlier, with the E-Transit, F-150 Lightning and Mach-E all qualifying by the time. there). But Nissan won’t hit that magic number until Q2 2023 or later.

Timelines for Toyota, Ford, and Nissan to reach the 200,000-car credit-tax deduction period – EVAdoption

Meanwhile, the EV tax credit itself already looks bound to recover this year, but with The Build Back Better bill is now on hold indefinitely, that is increasingly unlikely.

Nissan’s Jairaj acknowledges that the tax credit is an important part of determining where the two EVs stand — and how the Ariya and Leaf will co-exist. “Leaf has a very specific place in our squad. And the tax credit helps; Jairaj said. “The Leaf’s reach is certainly more than that thanks to the tax credit.”

Nissan Leaf SL Plus 2021

Jairaj said that whether or not the tax credit continues, it “has some implications” for how Leaf might be positioned.

“We have to make sure the customer is getting what they want, otherwise none of the equations will work.”

With about 5 billion consumer-driven miles and 160,000 Leafs in the U.S., Nissan also argues that it understands better than other full-line automakers what customers want — and the potential pain points. So those clever things will be applied to Ariya.

That will likely be long enough to bring the torch to a long-awaited replacement leaf — expected to be previewed by Chill-Out concept aired late last year.

Nissan Chill-Out concept – December 2021

“For Nissan, it’s all about having the right product at the right price at the right time,” added Nathan Sneddon, senior manager of product planning in the US. “Our belief is firmly that it is the right product for a given position — and it will continue to remain in the lineup for as long as that fact remains.”

While many would argue that Nissan’s pursuit of the Leaf has come a long way, the two EVs, at two well-matched prices, are a good statement of intent for the future.