BEIJING: Japanese automaker Nissan Motor and its Chinese joint venture partner announced on Monday a $9.5 billion investment plan in China to increase annual sales by one million vehicles and boost electric car production.
Dongfeng Motor Company is the latest Sino-foreign car company to splash out as China rolls out new regulations to limit gas vehicles and boost production of electric cars in coming years.
Nissan’s high-end brand, Infiniti, will go all electric in China by 2025, according to the plan.
The company provided few specifics on the investment plan, saying the money would go into several areas, from manufacturing to human resources.
The automaker sold 1.5 million vehicles in China last year, and said it plans to sell 2.6 million vehicles by 2022, when revenue is expected to hit 300 billion yuan ($47.6 billion).
The expansion plan calls for 20 new vehicle models, with 30 percent of its total sales to be made up of electric vehicles and new energy vehicles.
Beijing has outlined ambitious targets for transitioning China away from gas powered vehicles.
Authorities will implement a complex quota system in 2019 requiring makers to produce a minimum number of electric cars. They are also looking at plans to ban fossil fuel cars at a date that has yet to be decided.
The upcoming regulations have spurred foreign automakers to ramp up plans to make electric vehicles in China.
Volkswagen is establishing a joint venture with state-owned JAC Motors to make electric vehicles, aiming to get the first electric car to market by next year.
US car giant Ford envisages that 70 percent of all its cars available in China will have electric options by 2025.
Volvo plans to introduce its first 100 percent electric car in China in 2019.