Japan's Nissan has begun producing its first electric car aimed at China, according to media reports.
Working with a Chinese partner, Nissan is making a battery powered version of the popular Sylphy.
It is part of a growing push by automakers to manufacture greener vehicles for the world's biggest auto market.
It also comes as a US-China trade war is casting doubt over US business, a key market for Japanese carmakers.
Nissan has started producing the Sylphy Zero Emission along with China's Dongfeng Motor group.
It plans a lower-priced electric model for next year and wants battery-powered vehicles to make up about a third of its sales in by 2022, according to the reports.
"We're confident that the Sylphy Zero Emission rolling off the production line today will become a main player in the EV market," said Nissan CEO Hiroto Saikawa.
"We're going to roll out a range of EVs that will appeal to customers within all market segments."
China is the largest market for electric vehicles and new rules to cut pollution are expected to boost sales.
Global automakers including Ford and General Motors are all working to develop electric cars in China.