Nissan could ramp-up electric car production in China

Japanese auto giant Nissan is set to increase its production of electric cars in China in partnership with local joint venture companies.

A Nissan LEAF is on display during the 15th China (Guangzhou) International Automobile Exhibition, also known as Auto Guangzhou 2017 in Guangzhou city, south China's Guangdong province, 21 November 2017. [Photo: IC]

Nissan has revealed that it has spare capacity to build additional electric cars at its joint venture plants in Zhengzhou and Xiangyang.

The Japanese company said that it would prioritise increasing production at these sites before seeking to open new facilities.

The news comes after that China's tax rebate for hybrid and electrically powered vehicles had been extended until 2020.

The news has been seen as a further boost for the rapidly growing New Energy Vehicle (NEV) market in China.

The extension of the tax rebate, until the 31st December 2020, will provide an added financial incentive for this investment, and for consumers to purchase the vehicles.

The extension of the tax breaks won't just be of benefit to Western car makers.

Over the last few months, Chinese firms have a growing specialisation in electric vehicle technology.

Since November, this expertise has already brought benefits not just in China, but in cities around the world.

For example, the Chinese-owned London Electric Vehicle Company is already selling the most environmentally friendly London taxi ever, with technology that could in the future be used in delivery vans and domestic cars, too.

From 2019, strict new rules in China will come into effect, encouraging a greater number of environmentally friendly vehicles to be sold in place of diesel and petrol cars.