Nissan Diesel Motor Co. said Tuesday it will provide China's largest diesel engine maker, Dongfeng Chaoyang Diesel Co., with its diesel engine manufacturing and assembling technology starting in September.
Under a five-year contract, the major Japanese truck and bus maker will provide technical assistance for assembling 3,153cc diesel engines, it said.
Dongfeng Chaoyang Diesel, a unit of major Chinese automaker Dongfeng Motor Co., aims to produce about 20,000 units of the Nissan Diesel-designed QD32 engine per year, Nissan Diesel said in a press release.
The latest deal comes amid growing demand in China for high-powered, fuel-efficient engines for small trucks as the nation builds more highways and expands its distribution networks.
Nissan Diesel already has tieups with the Dongfeng group on large-truck production and the transfer of transmission technology.
Based in Chaoyang city in Liaoning Province, Dongfeng Chaoyang Diesel produced about 80,000 diesel engines in 2000.