Japan's Nissan Motor (7201.T) plans to double its capacity in China by 2012, joining a host of peers that have made similar recent moves to capture a bigger slice of the world's biggest auto market.
Nissan's new plan, which would see its annual capacity rise to 1.2 million units, exceeds the company's earlier target by 20 percent, underscoring its strong interest in China -- a rare bright spot for automakers as the global industry struggles to emerge from a sharp downturn.
Japan's third-largest automaker and its 44 percent owner Renault SA of France (RENA.PA) are also steering clear of General Motors' GM.UL upcoming initial public offering and won't subscribe to its shares.
Nissan would like to eventually take 10 percent of the China market, nearly double its current share of about 6 percent, chief executive Carlos Ghosn said at an event to launch a new SUV-making plant in the central China city of Zhengzhou.
"Among the Japanese carmakers ... Nissan holds the number one position," he said. "Still, we believe we have the potential to earn a higher market share through our partnerships with Dongfeng and Zhengzhou Nissan."
Nissan's announcement is the latest of a raft of similar plans by foreign auto makers looking to expand their China output to capitalize on the market's rapid growth.
General Motors GM.UL, which operates auto ventures with major Chinese auto groups SAIC Motor (600104.SS) and FAW Group, said last week that it sees the need to continue growing capacity at its China joint ventures.
Korea's Hyundai Motor (005380.KS) is building a third plant in China, boosting its total production capacity in the country by two-thirds to 1 million units.
Separately, Ghosn said "No" when asked by Reuters on the event's sidelines if Nissan-Renault was looking to buy shares in General Motors' upcoming IPO.
Speculation has been rife that GM is looking for strategic investors in the run-up to its highly anticipated IPO following its bankruptcy filing at the height of the global downturn.
