Nissan Motor Co to spend ¥1 trillion over five years in China in EV push

Nissan Motor Co plans to spend ¥1 trillion ($9 billion) over five years in China in a bid to become the largest global electric vehicle maker in the country.

The Japanese carmaker intends to increase annual deliveries by 1 million units by 2022, with much of the growth coming from electrified models, according to Jun Seki, head of Nissan's China operations, who spoke to reporters in Beijing yesterday.

Nissan, facing a stagnating US market and declining demand at home, is looking to the world's largest auto market for growth in the next five years. Global rivals including Volkswagen AG, General Motors Co, Honda Motor Co are also investing more in China in the race to become the fastest growing major brand in a country that seeks to put more electric vehicles on the road to cut emissions.

Nissan, which makes the Leaf EV is already the largest Japanese carmaker in China. It plans to introduce 20 electric models by 2022 in the country. The plan will see electrified cars accounting for around 30 per cent of all sales in 2022, by 2025, and the electrification of all Infiniti models by the time.

In 2003, Nissan established a joint venture with China's Dongfeng Motor Group and in August last year, established a joint venture with Renault SA and Dongfeng to develop electric cars for the local market.

Dongfeng Group, a state-owned company will start sales this year of Nissan's all-electric Leaf and two other electric models, said Jun Seki, president of their joint venture, Dongfeng Motor Ltd. He added the company will launch three "affordable" EVs next year.

"Our EV offensive starts from 2018," Bloomberg quoted Seki as saying.