Nissan Aims to Double China Sales by 2015
Nissan is investing 610 billion yen ($7.81 billion) in the production and marketing of 30 new models in China with the goal of doubling sales there to more than 2.3 million units in 2015.
On July 26 Nissan President and CEO Carlos Ghosn said he was in Beijing to convey how important the Chinese market is to Nissan. China is already Nissan’s biggest market, with sales of 1.02 million units in 2010, compared with 910,000 in the U.S. and 650,000 units in Japan.
Ghosn said Nissan’s goal isn’t overly ambitious because it is unable to meet current demand in China and its estimates have been too conservative in the past.
Nissan target of more than 2.3 million units in 2015, including those made by its China joint venture partner Dongfeng Motor, would give it a 10 percent market share. Nissan-badged cars and small commercial vehicles are expected to make up 2 million of that total. But it plans to raise the ratio of locally produced parts to 100 percent, up from the previous target of 90 percent. It will also not restrict technology transfers.
Nissan plans to expand the number of dealerships from 1,400 to 2,400. It will begin selling new electric vehicles under Dongfeng’s Venucia brand. Its joint venture with Nissan began in 2003.
China growth is key to Nissan global sales target of 7.2 million units for fiscal 2016, 1.8 times current sales. The China auto market doubled from 9.3 million in 2008 to about 18.1 million units in 2010, surpassing the United States to become the world’s largest car market.
But growth has slowed to only 3.4 percent in the first half of 2011 as the government has ended subsidies and implemented measures to ease pollution and congestion by curbing the number of new cars alowed to be registered in Beijing.
But the ambitious plans of global player will lead to a production capacity in China of more than 40 million units in 2015. Among the most ambitous are Japanese rivals Honda, which plans to boost production to 890,000 units in 2013, and Toyota, which plans to boost annual production by more than 100,000 units to 920,000 by the end of this year.