Japanese car maker Nissan and Chinese state-owned auto manufacturer Dongfeng Motor Group have announced a new partnership that will introduce affordable electric vehicles to the Chinese market.

The two car manufacturing giants will reportedly deliver affordable electric vehicles for around 30 percent less than the current pricing on the market. This could mean that the duo will release a car that is worth around RMB 200,000 ($30,500).

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China is known to give substantial incentives to car manufacturers. This could further lower the prices of upcoming cars.

Nissan will be manufacturing the electric cars locally in China. The Japanese car maker will also rely on Chinese manufacturers for important parts, like battery packs.

Prior to the recent development, Nissan revealed its intentions of increasing its market presence in China. The company is aiming to grow its market share from around two percent in 2015 to about five to 10 percent within the next couple of years.

Nissan Chief Executive Officer Carlos Ghosn has admitted that the sales forecast for the Nissan Leaf did not translate into actual sales. Ghosn added that the main reason why the Nissan Leaf did not appeal to Chinese consumers was because of the car's high upfront cost.

The Dongfeng Nissan Passenger Vehicle company was rolled out Nissan's first all-electric vehicle in 2014. Since its release, the Venucia e30 EV has enjoyed a large following in China and has posted positive sales figures.

Many market analysts agree that despite China's strict policies on foreign corporations, the country is still a viable market considering its massive consumer base.

About 330,000 units of electric vehicles were sold in China in 2015. The Chinese government aims to increase that figure to five million by year 2020.

TagsDongfeng, nissan, Nissan news, Dongfeng partnership, EV, electric vehicle, China Dongfeng, China Nissan