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.
The government will require all manufacturers to produce a minimum number of electric cars by 2019 – more electric cars are already sold in China than anywhere else in the world.
“In the last seven years, DFL undertook ambitious plans to grow sales and revenue – which it succeeded in doing through significant investment, a dynamic workforce and the introduction of 32 models for the Chinese market,” said Jun Seki, president of Dongfeng Motor Co.
“Our expectations for the next five years are no less ambitious.”
Volkswagen has recently set up a joint-venture with state-owned JAC Motors to make electric cars, while Ford plans to have 70% of all its cars in China available in electric versions by 2025.