Nissan March China sales up 36% to 37,000 units

Nissan Motor Co.'s passenger vehicle sales in China rose 36% in March from a year earlier to roughly 37,000 units, Yasuaki Hashimoto, head of the company's operations in the country, said Friday.

"We had a very good start," Hashimoto told reporters at a briefing on the Japanese auto maker's efforts to bring electric vehicles to China.

Nissan fared better than the overall market, where passenger vehicle sales rose 10.3% in March from a year earlier to 772,400 units, according to data from the China Association of Automobile Manufacturers.

China's passenger and commercial vehicle sales in March rose to a record 1.11 million units, better than most analysts expected, but Hashimoto said it is too early to revisit the company's own target for 4.6% growth in China sales this year to 570,000 units.

The auto maker will watch sales in the coming months and may review the target midyear, he said.

"The general trend since mid-last year is that inland markets are showing better growth compared to the coastal region. I think this situation still continues," Hashimoto said.

Nissan also said it aims to introduce electric vehicles in China in early 2011 under an alliance with Renault SA.

The company signed a memorandum of understanding Friday with China's Wuhan municipal government to launch electric vehicles in the country. Wuhan is a city in Hubei province in central China.

"We are establishing innovative partnerships with governments, cities and agencies to promote electric vehicles worldwide, and in China we will work closely with our local partners to develop the electric vehicle market," Nissan Chief Operating Officer Toshiyuki Shiga said in a statement.

Renault has a 44% shareholding in Nissan, which has a 15% stake in its French partner.

People familiar with the situation said earlier this week Nissan will provide free electric vehicles to Wuhan and help develop a network of vehicle-charging stations.

Shiga said the number of cars involved and Nissan's invesment in the partnership hasn't been decided. Nissan intends to partner with other Chinese cities on electric vehicles, including big cities such as Beijing and Shanghai, he said.

Wuhan has been chosen by the Chinese government to launch a pilot program on the use of alternative-energy vehicles in the public transport sector. The pilot will also run in 12 other Chinese cities.