Nissan is to spend $9.5bn with its Chinese partner Dongfeng Group to boost its share in China’s car market.
The move would see China become Nissan’s biggest market, overtaking the US.
The 50-50 joint venture, Donfeng Motor Co (DFL), plans to increase annual sales by 1 million vehicles to 2.6 million by 2022, boosting revenue to ¥300bn.
Dongfeng sold a record 1.5 million vehicles in 2017 across both the private and light commercial vehicle markets.
Crackdown on internal combustion engines
Investment will be focused on electric cars, with 20 new models in the pipeline, as China cracks down on internal combustion engines.