Nissan to sell plug-in hybrid by 2016

Nissan will produce a plug-in hybrid vehicle as part of its on-going efforts to become the world leader in low-carbon motoring by 2016.

The manufacturer launched its new five-year environmental plan today, reiterating its goal of selling 1.5 million electric cars by 2016 and introducing new targets to improve fuel economy across its fleet by 35 per cent against 2005 levels, reduce CO2 emissions per vehicle produced by 20 per cent, and increase the use of recycled materials to 25 per cent by the same date.

"More consumers are demanding products in line with their values, including cars and trucks with a lower carbon footprint," Carlos Ghosn, Nissan president and chief executive, said in a statement. "At the same time, we are using technology to make our factories greener and more efficient."

More than 16,000 LEAF electric cars have been sold worldwide to date and the Japanese company, along with French partner Renault, plans to add another three electric models to its fleet by the end of fiscal year 2017.

Nissan also said it aims to release a new plug-in hybrid and lead the development of an all-new fuel cell electric vehicle in conjunction with Daimler.

"When you combine the research and development budgets, and the investments of these three companies, you have the largest one in the industry," Ghosn told a news conference. "Nobody matches us."

In related industry news, Toyota announced over the weekend that it will produce hybrid vehicles and key components in China by 2015 as it bids to close ground on GM and Nissan, which will respectively launch the Chevrolet Volt and the LEAF in the country over the next few months.

Volkswagen, also popular in China, is similarly set to begin local production of pure electric cars in 2013 or 2014.

The plug-in version of the Prius is expected to be available in China from 2013, and Akio Toyoda, Toyota's president, told reporters that a pure electric vehicle would also be launched that year. This is likely to be an electric version of its RAV 4 compact SUV.