Nissan: China Manufacturing Capacity At 900,000 Units By 2010

SHANGHAI April 20, 2003; Dow Jones reported that Nissan Motor Co. , which finalized one of China's biggest auto investments last year, expects its annual production capacity in China to reach 900,000 automobiles by 2010.

"For our company, we have a big truck business and some commercial (vehicle) business (in China). Dongfeng already has a capacity of 400,000 units, so 900, 000 isn't so ambitious," Nissan Senior Vice President Katsumi Nakamura told reporters on the sidelines of the Shanghai auto show over the weekend.

Last year Nissan signed a 50-50 joint-venture agreement with Dong Feng Motor Corp., China's third largest auto manufacturer. Nissan will invest 8.55 billion yuan ($1=CNY8.28) in the manufacturing venture, which Nakamura said is expected to be launched in May.

The new company's first car, a premium sedan called the Sunny, was unveiled for the China market at the auto show. Nakamura said he expects to sell 20,000 Sunnys this year, and said the venture will manufacture 40,000 of the sedans next year.

Although Nissan hasn't priced the new car yet, Nakamura said the sedan, which will use about 50% locally manufactured auto parts, would be sold for around CNY200,000.

The first Sunny is expected to roll off the manufacturing lines in June. However, due to an outbreak of atypical pneumonia, there may be a delay because support staff and engineers needed to start production have postponed travel to China.

In addition to the Sunny, Nissan has begun to sell a sports utility vehicle called Paladin, which the company began making domestically in February. Nakamura said he expects Nissan to sell about 10,000 Paladins this year.

By 2006, Nakamura said six models will be locally manufactured.

Along with its Dongfeng joint venture, Nissan has a pickup truck joint venture in Zhengzhou, central China.