Nissan to invest €7.6BN in China to get ahead in EV segment
Nissan wants to become China’s largest electric vehicle maker and plans to spend 7.6 billion euros (9bn dollars) over the next 5 years. More than 20 electrified models have been lined up for the Nissan, Venucia and Dongfeng labels.
China remains a carmakers’ biggest hope – electric as it now must be. Nissan is showing a strong will as it announces plans to invest 9 billion dollars (7.6bn euros) up until 2022 in the People’s Republic.
The Nissan Dongfeng joint venture thus aims for 30 percent of its sales to be electrified and overall there are more than 20 models planned. They will be either all-electric or range extended with Nissan’s e-Power drive.
The system couples the tech of Nissan’s Leaf with a 1.2-litre petrol engine that charges the battery. Thus, propulsion relies solely on electricity. The battery is smaller than the Leaf’s and cannot be charged externally (we reported).
In China, the first six such electric cars will bear the Nissan, Venucia and Dongfeng labels from 2018 and 2019. Furthermore, by 2025 all Infiniti models will be electrified, a move Nissan recently spelled out in Detroit, aiming for 2021 there when it comes to new models.
Jun Seki, president of Dongfeng Motor Co said his company has aligned its DFG Plan 2022 strategy fully Nissan’s midterm plan, M.O.V.E. to 2022.
Local competition has been moving fast and with the EV sales quota to be introduced in the People’s Republic no later than 2019, there is not too much time for carmakers to electrify. As reported, the quota imposes new sales targets for electrified vehicles, forcing carmakers that manufacture more than 30,000 traditional vehicles annually to reach 10 and later 12 percent sales of NEVs.
For Nissan, China is crucial. The Japanese carmakers hopes the country will contribute about a third of its targeted revenue of 16.5 trillion yen by 2022, under the mid-term plan. This would make China the single-biggest market for the carmaker before the USA.