Japan’s Political Landscape Heats Up as LDP Leadership Race Nears; Nissan Faces EV Production Setback

By / / Breaking News

Key Takeaways

  • Nissan (7201.T) is significantly cutting production of its new Leaf electric vehicle (EV) by more than half from September through November due to a critical battery shortage, impacting thousands of units from its Tochigi plant.
  • Senior Japanese lawmaker Sanae Takaichi is scheduled to hold a press conference on September 19, while Farm Minister Shinjiro Koizumi is set for September 20, as both are expected to formally announce their candidacies for the ruling Liberal Democratic Party (LDP) leadership race.
  • The LDP leadership election, slated for October 4, will determine Japan's next Prime Minister, with Takaichi and Koizumi currently seen as leading contenders in a competitive field.
  • This dual development underscores persistent supply chain vulnerabilities in the global automotive sector and signals potential shifts in Japan's political and economic trajectory.

Nissan Halves New EV Leaf Production Amid Battery Shortage

Nissan Motor Co. (7201.T) has reportedly decided to reduce its production plans for the new model of its Leaf electric vehicle by more than half for the period of September through November. The significant cut is primarily attributed to a shortage of batteries, a critical component for EV manufacturing. This bottleneck stems from low manufacturing efficiency at a group battery subsidiary or delays in procurement, according to reports.

The production reduction impacts output at Nissan's Tochigi plant, which is responsible for assembling EVs destined for both the Japanese and U.S. markets. This move will result in several thousand fewer cars being produced each month. While Nissan (7201.T) has declined to comment directly on the revised production plans, the company emphasized that the launch of the new Leaf model remains slated for the year-end. Following the news, Nissan shares saw a slight dip, edging down 0.4%. This setback highlights ongoing challenges within the EV supply chain, particularly concerning battery availability and manufacturing efficiency, which continue to affect global automakers.

LDP Leadership Race Heats Up with Key Announcements

Japan's political scene is buzzing as the race for the Liberal Democratic Party (LDP) leadership intensifies, with two prominent figures, Sanae Takaichi and Shinjiro Koizumi, poised to make formal declarations. Senior lawmaker Takaichi is expected to hold a press conference on September 19 to announce her bid for the party's top post. Following suit, Farm Minister Koizumi is scheduled to hold his own press conference on September 20. Both are vying to succeed outgoing Prime Minister Shigeru Ishiba.

The LDP presidential election is set for October 4, 2025, and its outcome is crucial as the leader of the majority party in Japan's parliamentary system typically becomes the next Prime Minister. Polls indicate that Takaichi, a former economic security minister, and Koizumi, the agriculture minister, are currently considered frontrunners among a diverse field of candidates. Other notable contenders include former Foreign Minister Toshimitsu Motegi, Chief Cabinet Secretary Yoshimasa Hayashi, and former Economic Security Minister Takayuki Kobayashi. The race is expected to be closely watched for its potential implications on Japan's future policy directions and economic strategies.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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