Nissan to invest $9.5bn in China
9 February, 2018
The Japanese automaker Nissan Motor and its Chinese joint venture partner Dongfeng Motor announced last Monday a $9.5bn investment plan in China over the next five years. The two partners intend to increase the Nissan brand's annual sales to 1.6m vehicles a year by 2022. Nissan plans to introduce over 20 electric car models into the world's largest market.
China's auto market has been dominated by General Motors and Volkswagen for nearly two decades, with each of them selling 4m vehicles last year. Nissan, along with Toyota, Ford and Honda, lag far behind, each selling 1m-plus vehicles a year. “We aim to break away from this second-tier group and become a top-three China automaker,” Nissan's China chief Jun Seki told Reuters.
The Japanese automaker seeks to come up with lower-cost electric cars by locally sourcing electric motors and other key EV components from suppliers in China. In 2019, Nissan for example plans to launch three such lower-cost EVs under the Venucia name. “We expect EV and e-power hybrid business to become profitable,” Seki said. Nissan established Venucia jointly with Dongfeng. The brand began selling cars in 2012, competing with China's low-cost, no-frills indigenous models.