Nissan to rev up Chinese sales of low-fuel cars

Nissan Motor Co. plans to roll out vehicles with higher fuel economy in China, using a local venture to manufacture cars installed with continuously variable transmissions (CVT).

The automaker aims by 2012 to have one in two Nissans sold in China feature a CVT, which helps improve fuel efficiency by some 10 percent.

The move comes at a time when consumer interest in fuel-efficient vehicles is growing in China, where the fuel tax was raised last month from 0.2 yuan per liter to 1 yuan (US$0.14).

Affiliate firm Jatco Ltd. is set to open a CVT factory with annual capacity of 140,000 units in China's Guangzhou at midyear.

This will allow for local procurement by Dongfeng Nissan Passenger Vehicle Co.'s flagship plant, which is located in the same city.

Dongfeng Nissan now offers such CVT-equipped vehicles as the X-trail SUV, the Teana luxury sedan and the Sylphy midsize sedan. Vehicles featuring fuel-saving transmissions accounted for slightly more than 10 per cent of Nissan's total Chinese sales in 2007.