Nissan has entered into a CO₂ pooling agreement with Chinese automaker BYD for the 2025 model year to help meet the European Union’s fleet emission targets and avoid financial penalties. The move marks the end of Nissan’s previous partnership with Renault and Mitsubishi, which expired at the close of 2024.
Under EU regulations, automakers can combine their fleet emissions through so-called “CO₂ pools,” allowing manufacturers with higher emissions to offset them by joining forces with those selling low-emission vehicles. Nissan’s decision to team up with BYD—a company that exclusively sells battery electric and plug-in hybrid vehicles—reflects its need to balance out its relatively high CO₂ fleet levels as it ramps up its electrification strategy.
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A Nissan spokesperson told Automotive News Europe that “after a thorough evaluation of potential pooling partners, BYD was chosen due to the availability of credits and overall competitiveness.” Data from the first half of 2025 shows Nissan had the largest gap between its average CO₂ emissions and its 2025 target, highlighting the challenge it faces.
The automaker sold 199,000 cars in Europe by the end of August, with just 13,103 being electric—representing an EV share of 6.5%. Its current lineup includes the Ariya crossover and several electric light commercial vehicles, while new models such as the Leaf successor and the Micra EV will not arrive until 2026.
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BYD, in contrast, sold 95,473 vehicles in Europe during the same period, around 60% of which were battery electric and 40% plug-in hybrid. The Chinese manufacturer’s low fleet emissions make it a valuable partner for Nissan as it works to stay compliant with EU regulations.
The European Commission’s updated rules for 2025–2027 allow manufacturers to meet CO₂ targets averaged over the three-year period rather than annually. This gives automakers more flexibility to offset weaker years with stronger future performance.
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Other alliances for 2025 include Mercedes-Benz with Smart, Volvo with Polestar, and Stellantis with Tesla. Meanwhile, Renault has said it currently has no plans to enter a new pooling agreement, believing it can meet its targets independently.
Volkswagen, Hyundai, Kia, and BMW have yet to confirm pooling partners for 2025. Analysts expect BMW to meet its goals on its own, while Hyundai and Kia remain close to compliance thresholds. In a related development, EU filings show South Korea’s KG Mobility has joined a CO₂ pool with China’s Xpeng, another EV-only manufacturer.
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