Its renewed commitment to battery-powered cars comes as consumer demand for such vehicles grows in key auto markets such as China and the US

Nissan Motor Co announced it will spend 2 trillion yen ($17.59 billion) over the next five years to accelerate vehicle electrification, betting tighter carbon emission restrictions will spur demand for electric cars and hybrids.

Japan’s No. 3 car maker said on Monday it will introduce 23 electrified vehicles by 2030, including 15 electric vehicles (EVs), and plans to introduce all solid-state batteries by March 2029.

Nissan, which was among the first mass-market EV makers with its Leaf model, is aiming to win market share with its deeper push into electrified vehicles and fend off rivals, including newer entrants such as Tesla Inc.

Its renewed commitment to battery-powered cars comes as consumer demand for such vehicles grows in key auto markets such as China and the US.

Chief Executive Makoto Uchida said Nissan aimed to make EVs affordable for more drivers.

We will advance our effort to democratise electrification, he said in an online presentation.

Nissan shares dropped as much as 4.9% in morning trading in Tokyo, underperforming its major rivals.

Although still only a small portion of vehicles on the road, global electric car registrations in 2020 grew 41% even as the overall car market contracted by almost a sixth, according to the International Energy Agency (IEA).

Nissan, however, has not committed to abandoning fossil-fuel vehicles.

As it readies to compete for the growing demand for EVs, Nissan in July pledged $1.4 billion with its Chinese partner Envision AESC to build a giant battery plant in Britain that will power 100,000 vehicles a year including a new crossover model.

CEO Uchida said Nissan will make EVs more affordable by reducing lithium-ion battery costs by 65% within eight years.