Nissan Motor Co. announced its plans to invest 60 billion yuan ($9.5 billion) in China with its joint-venture partner. According to the automaker, the investment will take place over the course of the next five years.
The carmaker is also aiming for the top three spot in the world’s biggest auto market.
Nissan and Chinese partner, Dongfeng Group stated on Monday that it will develop 20 electric vehicles for the business investment.
Nissan’s all-electric Leaf and two other electric models will be on sale this year, said Jun Seki, president of their joint venture, Dongfeng Motor Ltd. He also announced that there are three “affordable EV” compacts being launched next year.
“Our EV offensive starts from 2018,” stated Seki.
The automaker aims to eventually boost total Chinese volume sales by 70 percent from 2017 levels to 2.6million vehicles. This plan includes the company’s gasoline-powered models with 30 percent of all sales in 2022 coming from EVs. They also aim to have all Infiniti models electrified by the year 2025.
Aside from Nissan, Volkswagen AG and General Motors Co. are also looking into China to boost future revenue. The carmakers are also investing billions of dollars for the development of electric vehicles aimed to appeal to Chinese drivers.
The Japanese automaker was uncertain at first about the pace at which demand will grow from electrified vehicles in China. This was mostly the reason why they were cautious of over-investing, said Seki.
“The growth in local competition has been much faster than we expected,” Seki stated. “Now we have come around to changing our local strategy.”
Nissan set a record of 1.52 million vehicles sold in China last year. This was compared to 1.59 million vehicles in its top market, the U.S.
Toyota Sets China Sales Goal for 2018
Like Nissan, Toyota Motor Corp. has set a tough sales goal for itself in China in 2018.
Toyota announced that it aims to sell 1.4 million vehicles in 2018 in China alone. This is almost 9 percent higher than the number of vehicles it sold last year.
Company insiders were quick to point out that factors like production constraints make it harder to meet the target.
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