Nissan Motor has announced plans to invest 50 billion yuan ($7.8 billion) in China by 2015, the world's biggest auto market as well as the largest market for the Japanese automaker.
Wuhan-based Dongfeng Motor Co, a joint venture between Nissan and Dongfeng Motor Group, plans to increase annual vehicle sales by 70 per cent to more than 2.3 million within five years from 1.3 million now, the company said in a statement yesterday.
Dongfeng, which holds a 6.2 per cent market share in China, also aims to increase the number of dealerships in the country to 2,400 from the present 1,400.
"China is central to Nissan's plan to raise global market share and profit margins to 8 per cent by fiscal 2016," said Nissan CEO Carlos Ghosn, while unveiling a new business plan for China yesterday.
"We have today about 6.2 per cent market share in China and we know we have a shortfall in terms of supply - we cannot provide as many cars as the market is demanding," Ghosn said. "I would say the pent-up demand on our product today is above 7 per cent already. We want to reach 10 per cent."
Nissan, Japan's second-largest automaker, plans to introduce about 30 products in China by 2015, including a fully electric car.