Nissan Motor may have solved China electric car puzzle

The carmaker’s sale of its electric battery business to a Chinese private equity fund may shift its China business into top gear.

Nissan Motor’s sale of its electric battery business to Chinese private equity fund GSR Capital could be a major step towards local procurement of batteries in the world’s biggest electric vehicle market.

In China, electric vehicles are not eligible for subsidies unless batteries are procured from a manufacturer certified by the Chinese government. No foreign-owned carmaker has this certification. On the other hand, few Chinese battery makers can meet the technological requirements of global automakers.

This has proved a conundrum for Japanese automakers that are losing market share to Chinese upstarts in the global race to dominate electric vehicle sales. Nissan Motor may have solved the puzzle...

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