The Nikkei reports that Nissan will switch all models sold in China to either electric or hybrid vehicles by 2025. The move follows an announcement that China will require all new vehicles sold in 2035 to be “eco-friendly.” Nissan will introduce nine models in China by 2025 that will either be fully electric or hybrid.

Nissan will release an e-Power system model in China next year. e-POWER, introduced in 2016 in the Note, is a non-plug-in series-hybrid drive system. (Earlier post.)

In the next three years, the number of e-Power models will be increased to 5 or 6, including its sedan “Sylphy.” The company also plans to launch a new electric model “Ariya” next year.

Nissan is expanding its production capacity in China; new plants will start operations in Changzhou, Jiangsu Province, this year, and in Wuhan, Hubei Province, next year. The facility expansion will boost production capacity by 30% to 2 million units.

It will likely take about 10 years for electric vehicles to be as profitable as gasoline-powered vehicles due to high battery costs, according to the Nikkei report. As the expansion of cleaner vehicles is inevitable for sustaining growth in China, Beijing hopes to achieve the policy goal by promoting hybrids, which have better profit margins, as well.

Nissan currently plans to increase the sales ratio of electric vehicles in China from 2% in fiscal year 2018 to 23% by 2023, but the company could raise the goal further as it reviews sales strategy over the next five years.