Nissan China ventures to boost auto sales 64% by 2012

Nissan Motor Co., Japan's third- biggest automaker, may raise sales at its Chinese ventures at least 64 percent by 2012 as China's economic growth boosts demand for cars and trucks.

The ventures will add 10 passenger car models and five commercial vehicles in the period, with the aim of lifting sales to more than 1 million vehicles a year, Kimiyasu Nakamura, president of venture Dongfeng Motor Co., told reporters in Beijing today.

Nissan will open a 1 billion yuan ($144 million) light commercial-vehicle plant in China in 2010 to boost capacity in a country that may surpass the U.S. as the world's biggest auto market by 2015. The automaker also plans to boost sales of low- cost Dongfeng-brand vehicles in Africa and other emerging markets to offset a slowdown in the U.S. and Japan.

"Nissan is enjoying positive growth momentum in China as it's paying more attention to the country," said Ricon Xia, an analyst at Daiwa Associate Holdings Ltd. in Shanghai. "Its product line-up in China is competitive and it will do better this year than last year."

Teana Sedan

The automaker will add a revamped Teana sedan in China in June. Monthly sales are likely to be triple those achieved by the old model last year, said Senior Vice President Colin Dodge.

Nissan, Dongfeng Motor and Dongfeng Automobile Co. will fund the new light-commercial vehicle plant in Zhengzhou, northern China. It will have a capacity of more than 120,000 vehicles a year.

Nissan's China ventures sold 610,000 vehicles last year. Dongfeng Motor, which makes passenger cars, is equally owned by Nissan and Hong Kong-listed Dongfeng Motor Group Co. Commercial vehicles are built through Shanghai-listed Dongfeng Auto and Zhengzhou Nissan Automobile Co., both of which Nissan also controls with Dongfeng Motor Group.

The ventures plan to export 32,000 commercial vehicles a year by 2012, double last year's tally, Nissan said. The vehicles, representing about 10 percent of total commercial vehicle sales, will be sold in Southeast Asia, the Middle East and other emerging markets. Zhengzhou Nissan also makes vehicles in Africa.

Nissan will expand its capacity in China further in the future, Dodge said. The company will decide its plans in fiscal year 2009, he added. The carmaker is currently able to make 521,000 cars and light trucks in China each year.

Nissan fell 1.1 percent to 883 yen at the 3 p.m. close in Tokyo. Dongfeng Motor Group rose 3 percent to close at HK$3.76 in Hong Kong.