Nissan's Jan-Aug China sales up 32% to 466,219 units

Shanghai, September 17 (Gasgoo.com) Nissan's sales in China rose 32% to 466,219 vehicles in the first eight months of this year, making it the company's second-biggest market after the U.S., media reported yesterday.

Nissan and other carmakers are benefiting from tax cuts and government subsidies in China, which helped the country's car sales jump a record 90% last month. Models accounting for 63% of Nissan's China sales, including Tiida compacts and Livina minivans, qualify for China's tax cuts for small cars.

Nissan plans to increase annual output to 460,000 vehicles at its plant in Guangzhou from 360,000 units by adding a third shift starting in October. The company and its partner Dongfeng Motor Group will also add a new plant to increase capacity to 600,000 units at the Guangzhou production base by 2012.

Nissan will start selling its first electric vehicle, the Leaf, in Japan, the U.S. and Europe next year and in China from 2011. The company plans to initially export the battery-powered car to China from Japan and eventually make it in China, likely at the Guangzhou Huadu plant.

Nissan signed a partnership agreement with the Chinese government in April to develop a battery-charging network for electric vehicles. China aims to boost annual electric-vehicle production capacity to half a million units over three years.

Nissan Motor expects its Chinese vehicle sales to climb 18% above its initial target of 570,000 units to 670,000 units this year, helped by the government's tax incentives on smaller cars.