Renault Nissan will use its research and development center in Chennai, India, to develop affordable electric cars for China, its CEO Carlos Ghosn said.

Talking at the Paris Motor Show, Ghosn said Renault Nissan for now does not see India as a target market for electric vehicles; thus, it plans to use its personnel and resources in Chennai's development center to boost its expansion towards making cheap electric cars for China.

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"Electric car is going to be part of the future of our industry. We will develop low-cost electric cars based on knowledge coming out of India, but deploy it in China, because that is where the market exists, " Ghosn told Economic Times.

He also admitted that he expected the United States to lead the electric car industry, but the boom is happening more in China, thanks to the competitive domestic manufacturers and the local government support.

"The Chinese market is booming, and we are losing our leadership to a number of local players, who are coming out with cheap electric cars," Ghosn said.

"So we are working towards bringing in our own affordable electric cars for the Chinese market to make sure we don't end up being overwhelmed with what's coming in."

The Renault Nissan has already pledged about $5.2 billion for its electric vehicle and battery development venture, according to The Tech Portal. However, the company is scaling up its efforts to rival with local competitors.

Meanwhile, talking about the future of autonomous cars, Ghosn said all carmakers are working on a solution, but it takes between 3 and 4 years to witness a substantial progress.

TagsRenault Nissan, nissan, Electric cars, Carlos Ghosn, Renault Nissan Chennai