Nissan Motor, one of Japan’s leading automakers, announced on Sunday that it would sell electric vehicles (EVs) developed in China to global markets, as part of its strategy to leverage the country’s resources and expertise in electrification.

The company also revealed that it had signed a deal with Tsinghua University, China’s top-ranked academic institution, to establish a joint research centre that would focus on advancing the research and development of EVs, including aspects such as charging infrastructure, battery recycling, and intelligent mobility.

Expanding exports of China-made cars

Nissan is considering exporting its line-up of existing internal combustion engine vehicles and upcoming pure electric and plug-in hybrid cars manufactured and developed in China to overseas markets, Masashi Matsuyama, vice president of Nissan Motor and president of Nissan China, told reporters in Beijing.

He said that Nissan was aiming at the same markets as its Chinese rivals, such as BYD, which have been expanding their presence in regions such as Europe, Latin America, and Africa.

Nissan is joining other foreign brands, such as Tesla, BMW, and Ford, that are increasing their exports of China-made cars to take advantage of the country’s lower manufacturing costs and higher capacity utilisation of their factories.

China is the world’s largest auto market and the leader in EV production and sales, with more than 2 million EVs sold in 2022, accounting for over 40% of the global market share.

Facing challenges in the Chinese market

However, Nissan has faced a tough challenge in maintaining its sales and market share in China this year, due to the fierce competition from domestic brands and the rapid shift to EVs.

According to data from the China Association of Automobile Manufacturers, Nissan sold about 590,000 vehicles in China from January to October 2023, down 13.5% from the same period last year. Its market share also dropped from 5.6% to 4.8%.

Nissan’s performance was worse than the overall decline of the Chinese auto market, which contracted by 6.7% in the first 10 months of the year, amid the impact of the COVID-19 pandemic, the global chip shortage, and the regulatory crackdown on the tech sector.

Nissan’s EV sales in China were also lagging behind its competitors, with only about 30,000 units sold in the first three quarters of the year, compared to more than 200,000 units sold by Tesla and more than 300,000 units sold by BYD.

Partnering with Tsinghua University

To boost its competitiveness and innovation in the EV sector, Nissan announced that it would establish a joint research centre with Tsinghua University next year, building on the existing collaboration that started in 2016.

The research centre will focus on the research and development of EVs, including charging infrastructure, battery recycling, and intelligent mobility, which are key areas for the future of sustainable transportation.

Nissan President and Chief Executive Makoto Uchida said in a statement that the partnership with Tsinghua University would help Nissan gain a deeper understanding of the Chinese market and develop strategies that better meet the needs of customers in China.

He added that Nissan was committed to contributing to the development of the EV industry and the society in China, as well as to achieving its global vision of carbon neutrality by 2050.

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