EPA Range, Prices And Competitiveness Without Tax Credit

The Nissan Leaf was one of the first modern all-electric cars available in the United States (since 2010) and today we will take a look at the 2023 model year edition.

The company announced a simplified lineup for the 2023 model year with two main versions – S, equipped with a 40-kilowatt-hour (kWh) battery, and SV Plus with a 60-kWh battery (which replaces the 62-kWh version).

As we know, since mid-2022, the MSRP prices of the two versions start at respectively $27,800 and $35,800 (plus $1,095 destination and handling).

According to the EPA, the Nissan Leaf S (40 kWh) offers a Combined range of 149 miles (240 km), which is the same as in the case of the 2022 model year version. There are no changes to the powertrain, including the 110-kilowatt (kW) electric motor at the front.

The new SV Plus (60 kWh) version has an EPA Combined range of 212 miles (341 km), which is less than the retired 62-kWh battery version (215 miles in SV/SL trim or 226 miles in S trim). The SV Plus version has a 160-kW electric motor.

2023 Nissan Leaf EPA Combined range:

• S (40 kWh): 149 miles (240 km)
• SV Plus (60 kWh): 212 miles (341 km)
  [63 miles or 42% more]

Energy consumption, including charging losses, is estimated at 109-111 MPGe or 304-309 Wh/mi (189-192 Wh/km) for the two.

Both Nissan Leafs are equipped with a 6.6 kW onboard charger. In terms of DC fast charging, there is still the CHAdeMO inlet (instead of the more popular CCS Combo 1). Interestingly, the S version is limited to 50 kW, while the system in the SV Plus version theoretically offers up to 100 kW charging (we guess that the real-world power output is lower).

The main question is whether the new Nissan Leaf is still competitive in the US. The sales volume of 2,354 units (down 46 percent year-over-year) in Q1 2023 does not indicate any success so far.

The entry-level version starts at $29,135 ($28,040 + $1,095 DST), while the SV Plus is $8,000 more expensive.

The main issue for the Nissan Leaf now is that it’s no longer eligible for the $7,500 federal tax credit. It was when the Inflation Reduction Act of 2022 (IRA) came into power in mid-2022 because the car is locally produced (since 2013). However, after the guidance on the critical minerals and battery component requirements was introduced on April 18, it turned out that despite the local production of batteries, the Leaf is not eligible for the incentive.

Only models that are locally produced and meet two new requirements will receive the full credit:

• 40% of the value of critical minerals need to be mined or processed in the United States (or FTA countries), or recycled in North America
• 50% of the value of battery components must be manufactured or assembled in North America

As we understand, Nissan was unable to meet the required level of local production. There is a chance that it will change in the future if the manufacturer applies changes to its supply chain.

Another model that has lost access to the federal tax credit in a similar way is the Genesis Electrified GV70, which was eligible only for a few weeks when production started in early 2023.

Anyway, as long as there is no $7,500 federal tax credit, the Nissan Leaf will be in a very challenging position, compared to some of the other BEVs. The entry-level version might be simply too expensive compared to the cars with the incentives. On the other end, the SV Plus price is only marginally lower than the effective price of the Tesla Model 3 RWD ($37,880, after deducting obligatory costs and a $3,750 tax credit), which has 272 miles of EPA Combined range.

If we include also some frustration with the outgoing CHAdeMO charging standard in the US, we are not too optimistic about the Leaf.