• Nissan CEO Makoto Uchida told CNBC on Monday that the development of the EV sector — and particularly the price pressures — had come "much, much earlier than we thought."
• To address the "extreme market volatility," the automaker is targeting an additional 1 million vehicle sales by the end of fiscal 2026.
• It announced plans to develop EVs in "families," integrate powertrains and focus on battery innovations as it looks to cut the cost significantly.

Nissan is targeting an additional 1 million vehicle sales over the next three years and a 30% reduction in electric vehicle production costs by 2030, the Japanese carmaker announced Monday.

In a new medium-term business plan, Nissan also said it would launch 30 new models by fiscal 2026, with 16 of these electrified. It's aiming for EV and combustion engine costs to reach parity by 2030.

"This plan will enable us to go further and faster in driving value and competitiveness," Nissan President and CEO Makoto Uchida said in a statement.

"Faced with extreme market volatility, Nissan is taking decisive actions guided by the new plan to ensure sustainable growth and profitability."

The automaker also said it is targeting an operating profit margin of more than 6% by the end of fiscal 2026, as well as "long-term profitable growth."

'A lot of uncertainty'

It comes as the hype around electric vehicles appears to have cooled a little recently, with major manufacturers including Ford Motor, General Motors, Mercedes-Benz and Volkswagen all scaling back or delaying EV plans amid cooling demand. Even sector giant Tesla is bracing for what CEO Elon Musk said in January "may be a notably lower" rate of growth.

Traditional auto powerhouses are also facing a huge competitive challenge from China when it comes to electrification. The country boasts the world's largest and most crowded EV market and its automakers are exerting significant downward pressure on prices.

CEO Uchida told CNBC on Monday that the development of the EV sector — and particularly the price pressures — had come "much, much earlier than we thought."

To address this, Nissan plans to develop EVs in "families," integrate powertrains and focus on battery innovations as it looks to cut the cost of its next-generation fleet by 30% when compared with the current model Ariya crossover.

"In order to do that, we have to have a great partnership with our suppliers to work on from the app stream earlier with the scale that we have to provide," Uchida told CNBC's "Squawk Box Europe."

"Otherwise, I think the next five years, there's a lot of uncertainty that we are facing. The scalability will be most important, and how are we going to make that as a Nissan collaboration with a partnership is going to be one of the key items."

Nissan's plan: The Arc

Under the two-part plan dubbed The Arc, Nissan said it will aim to ensure volume growth through a "tailored regional strategy," and prepare for an accelerated EV transition by balancing its portfolio between EV and combustion cars, growing volumes in major markets, and financial discipline.

This will be supported by "smart partnerships, enhanced EV competitiveness, differentiated innovations and new revenue streams."

Nissan said this strategy could yield potential revenues of 2.5 trillion yen ($16 billion) from new business opportunities by fiscal 2030.