Nissan has fallen behind its main Japanese rivals in the technology stakes, and to make up for lost ground the company is rumored to be developing electric powered cars that will hit the markets in three years. Reuters reports that Nissan will also develop a range of gas-electric hybrid cars by 2010 as well as a line-up of diesel cars, which it will co-develop with its French partner Renault.

Japanese newspapers are also claiming that Nissan is developing bioethanol powered cars also with the help of Renault in exchange for fuel cell and hybrid car technologies. Though it all sounds like pie in the sky, Nissan did show several concepts at the Eco Car Show in Japan last month including its fuel-cell X-Trail and the Hypermini ultra-small electric two-seater.