2010-09-20 16:14

Japan's Nissan Motor Co Ltd plans to double its production capacity in China to 1.2 million units by 2012, as it aims for a 10 percent share of China auto market, Reuters reported Monday.

The new production plan is 20 percent above Nissan's earlier target, said the report.

The auto company on Monday announced the opening of its first sport utility vehicle (SUV) plant in Zhengzhou, capital city of the central China Henan province.

A Nissan X-trail SUV driving on sandlot in a vehicle test driving and experiencing event in Inner Mongolia on May 30, 2010 . [Photo/CFP]

Nissan represents 20 percent of total sales in China, and holds the number one position, Reuters citing Chief Executive Carlos Ghosn's speech at the opening ceremony for its new SUV plant.

Nissan was expanding its other two production bases in southern Guangzhou and Xiangfen in northern Shanxi province, Reuters quoted Ghosn.

Nissan's new SUV plant in Zhengzhou has a total investment of 1 billion yuan ($148.7 million), and will be run by Zhengzhou Nissan Co Ltd, a joint venture between Nissan and Dongfeng, according to the report.

Nissan, 44 percent held by France's Renault SA, runs an auto venture with Hong Kong-listed Dongfeng Motor Group Co Ltd (DFG) making passenger vehicles, including the Teana and Sylphy sedans. Commercial vehicles are built through Shanghai-listed Dongfeng Automobile Co Ltd and Zhengzhou Nissan Automobile Co, both of which Nissan controls with DFG.

DFG also joined hands with French PSA Peugeot Citro?n, and Japanese Honda Motor Co. The parent Dongfeng Motor Corporation is in joint venture with Korean Kia Motors Corp.

Passenger car deliveries in China jumped nearly 60 percent from a year earlier, as economic growth boosts car purchases in the world's biggest automobile market.