Nissan plans new plant in China in sales push
TOKYO: Nissan Motor Co may decide soon on building another factory in China as the company pursues a goal of expanding sales in the country by one million units by 2022, according to its chief executive officer (CEO).
“First step is adding capacity in the existing operation. We still have some room to expand,” said CEO Hiroto Saikawa in Cordoba, Argentina, yesterday.
“Second step is we may add another new plant that would have the capacity to build 300,000 to 500,000 vehicles.”
China is poised to overtake the United States to become Nissan’s biggest market this year and the Japanese carmaker trails only Volkswagen AG and General Motors Co in the country.
Nissan officials said in February the second-largest Japanese carmaker planned to spend one trillion yen (RM36 billion) over five years to become the largest global electrified vehicle maker in China.
Dongfeng Motor Group, Nissan’s partner in China, will invest one billion yuan (RM584 million) to turn an existing facility in Changzhou, Jiangsu province, into a production site for Nissan with an annual capacity of 120,000 units.
The plant will give Nissan a foothold in eastern China, complementing the carmaker’s facilities in northern, southern and central parts of the country.