Nissan plans to supply electric cars and hybrids to China

Nissan Motor Co. and its French partner Renault last week signed a partnership agreement with the Chinese government to introduce electric cars into China in early 2011.

Toshiyuki Shiga, chief operating officer of Nissan, says the first electric car to be brought in China will be one with a size larger than a "small mini car". The Nissan and Renault alliance will start selling electric vehicles globally in 2012.

Shiga says Nissan plans to launch a hybrid in China "several months later" after the car is launched into in Japan and the United States in 2010.

The move was made in response to a pilot program launched by the Chinese government earlier this year.  Under the program, the government will provide incentives to buyers in public transportation sectors in 13 Chinese cities. For instance, it offers 60,000 yuan ($8,742) in subsidy to an electric car buyer.

Nissan has chosen the central China city of Wuhan, one of the 13 cities, as the first city to promote its electric vehicles. The company is in talks with more Chinese cities for the same purpose, according to Yasuaki Hashimoto, president of Nissan Motor (China) Ltd.

Nissan's Chinese partner, Dongfeng Motor Corp., is based in Wuhan. "In China we will work closely with our local partners to develop the EV market," says Shiga.

Nissan says the plan includes a blueprint for a battery-charging network and programs for mass marketing electric vehicles. The Nissan executives declined to provide how many electric cars it will supply for the pilot program in China.

Shiga says in the early stage Nissan "doesn't have a plan" to produce the electric cars and batteries in China due to the envisaged small sales volume.

The lithium-ion batteries to be mounted to Nissan's electric vehicles will be provided by Automotive Energy Supply Corp. in Japan, a joint venture between Nissan and NEC Corp.

"Our sales enjoyed a good growth in China," says Shiga. Sales of Nissan in China were 144,603 units in the first quarter, up 9 percent year on year, according to the company.

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