Market leader Nissan plans to switch all vehicles sold in China to electric or hybrid cars by 2025

Nissan Motor Corporation aims to switch all its vehicles sold in China to electric or hybrid cars by 2025, as the Japanese automaker tries to keep up with Beijing's push for cars with smaller carbon footprints.

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Nissan is ready for modernization

Nissan is poised to launch nine models in China by 2025 that will be all-electric or hybrid, starting with the launch of a model equipped with its 'e-Power' hybrid system in China next year.

Nissan is also expected to launch its Ariya electric car model next year. Furthermore, in the next three years, the number of e-Power electric car models is expected to be increased to five or six, including its Sylphy sedan. The Chinese government has reportedly reclassified electric and hybrid cars as fuel-efficient vehicles, making it easier for automakers to meet production quotas.

As part of its effort to make all new vehicles introduced by 2035 environmentally friendly, half of the cars are expected to be zero-emission vehicles and the other half to be gasoline-electric hybrid vehicles.

Japanese automaker plans to boost its electric car sales in coming years

Nissan plans to increase the proportion of electric vehicle sales in China from 2% in fiscal 2018 to 23% by 2023, but the company says it may raise the target further as it reviews its sales strategy over the next five years.

It will likely take about 10 years for electric cars to be as profitable as gasoline-powered vehicles, due to high battery costs, according to the Nikkei report.

As the expansion of cleaner vehicles is inevitable to sustain growth in China, Beijing hopes to hit the policy target by promoting hybrids, which also have better profit margins.