The Chinese Market Influenced Foreign Auto Makers' Investment in Environmental Vehicles
The world's largest car companies are becoming more active in China's electric vehicle investment, in an effort to counter local companies that have taken the lead in pure electric vehicles. Nissan's China joint venture announced on February 5 that it will invest 60 billion yuan over the next five years to boost capacity and develop models such as pure electric vehicles (EV). "The Chinese market is still the most exciting, dynamic and fast growing market." said Guan Run, President of Nissan and Dongfeng joint venture and the Nissan executive director. Nissan will sell more than 40 new models by 2022, with more than 20 of them pure electric vehicles or cars powered by e-power. Electric vehicles are expected to account for 30 per cent of Nissan's sales in China by 2022. China will introduce a "new energy vehicle integration system", requiring auto makers to produce and sell a certain proportion of new energy vehicles, such as pure electric vehicles, in 2019. In China's pure electric vehicle market, local companies such as BYD are on the rise, and Nissan is considering a short-term concentration of investments to dominate the market. In 2017, Volkswagen, which ranked No. 1 in sales in China (4.18 million), announced that it will invest 10 billion euros in China before 2025 in the development and production of pure electric vehicles and plug-in hybrids (PHV), etc. It plans to produce about 40 pure electric and hybrid models in China, selling 1.5 million pure electric vehicles by 2025. General Motors, whose sales in China reached 4.04 million in 2017 and ranking No. 2 in market share, plansto launch a number of pure electric vehicles, such as Cadillac, in China.It is also expected that more than 10 pure electric and fuel cell vehicles (FCV), which the company plans to develop before 2020, are also given to the Chinese marketat the same time. Honda, whoseSales in China hit a record high in 2017 (1.45 million),also plans to begin production in 2019 the sixth factory in China, is expected to invest in the plant about 3 billion yuan for the production of pure electric and plug-in hybrid vehicles, etc. The situation is becoming clear that China's huge market is influencing and even leading the investment strategy of foreign auto dealers in new energy vehicles.