Nissan Is Going All Hybrid\/EV in China

Nissan’s future lineup in China is going to be 100-percent electric or hybrid by 2025. This includes swapping models over to electric, jettisoning some and adding some new ones, according to a report by Nikkei Asia. In total, Nissan is introducing nine electric or hybrid models in China by 2025. It follows the country’s recent announcement requiring all new vehicles sold after 2035 be “eco-friendly.”

In the next few years Nissan is increasing its hybrid models on the ground, including the recently announced Ariya, a sedan and a few others. Many will use the company’s e-Power hybrid system, borrowing from the Leaf’s EV technology. However, e-Power cars will have engines to go along with the motors and batteries.

Nissan is expanding its production in China too. New plants will open in Changzhou and Wuhan next year, adding 30 percent to its Chinese capacity. That could be about 2 million units. The Chinese government just reclassified hybrid vehicles to fall into that “eco-friendly” category to help automakers meet the new goal.

There are still many hurdles. It will take a few years, Nikkei Asia is estimating 10, for electric vehicles to be as profitable as gasoline cars. In fact, two years ago a report by AlixPartners, a worldwide business consulting firm, said building new electric cars costs almost $9,000 more than conventional cars, and plug-in hybrids an additional $5,700. Automakers are also spending more than $200 billion to develop these new cars. But as the market changes, so do these figures.

Because Asia has a much more robust mass transit system, EV options and EV range discussions take back burner status there. But now with China dropping these new rules, it should kickstart the manufacturers that do business there to start building even more eco-friendly vehicles, Nissan being one.

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