Published By : 05 Feb 2018 | Published By : QYRESEARCH
The China automotive industry is booming on the back of increasing disposable income among the urban populations, and a number of automobile companies have been incrementing their focus on this emerging country-wide market with tremendous potential. In addition to that, the latest trend is of electric vehicles, which has received considerable support from the Chinese government as well.
Collaborating both these factors, Japan’s leading automotive player, Nissan Motor Co. has decided to invest 1 trillion yen into the Chinese automotive market, which calculated to nearly US$9.0 billion. The aim of the company is to increase sales by a million unit by the end of 2022, while a substantial chunk of the investment will also be made for the development of 20 near electric vehicles across different brands that the company holds.
It must be noted that Nissan sold nearly 1.52 million vehicles in China in 2017, only a few hundred thousand less than its primary market in the U.S., wherein 1.59 million vehicles were put on road by the company. Newly appointed CEO, Hiroto Saikawa, says the company would be intensifying the competition against China automotive leaders such as Honda Motor Co., Toyota Motor Corp., General Motors Co., and Volkswagen AG. While all these leaders have two joint ventures in China, Nissan continues to function with its only venture with China’s Dongfeng Group, which started in way back in 2003.
Nissan is targeting an annual revenue of about US$47.6 billion under the new plan, with EVs accounting for 30 percent of all sales in the year 2022, whereas all Infiniti models would be electrified by 2025.