Dongfeng Nissan JV to boost Nissan's Taiwan business

Shanghai, February 24 (Gasgoo.com) Yulon Nissan Motor Co., Nissan's Taiwan venture for assembling and importing Nissan and Infiniti cars on the island, feels optimistic about  this year's operations, with profit boost from the Japanese carmaker's Dongfeng venture in mainland China, Taiwan Economic News reported yesterday.

Lsst month, the Nissan Tiida crossover led as the best-selling model in Taiwan, thanks to Yulon Nissan's promotion by offering a NT$30,000 (US$923) discount, equaling that offered by the local government for each new 2,000cc or smaller car sold.

The company's successful promotions raised its market share in Taiwan to a record high of 16.7%, delivering over 1,700 Tiida cars last month. Yulon Nissan aims to sell more than 30,000 new cars this year, though new-car sales on the island are predicted to drop from about 300,000 units in 2009.

Nissan's re-investment in Dongfeng Motor Co. Ltd. in mainland China means more lucrative profits to Nissan's Taiwan operations this year. Dongfeng invested NT$2.4 billion as rewards in Yulon Nissan in 2009, and the amount is likely to reach NT$3 billion this year.

The Dongfeng Nissan venture sold 520,000 new cars in the mainland market in 2009, and the volume is estimated to increase to about 600,000 units, or up 15%, this year. Dongfeng also expects to source the Nissan Bluebird (Sylphy) sedans from Yulon Group.