Nissan to raise production of small commercial vehicles

Japan’s Nissan Motor Co. will increase production of small commercial vehicles in China, with its local affiliate planning to build a new plant. Dongfeng Motor Co., 50% owned by Nissan, intends to spend about 1 billion yuan (US$144.88 million) to build a new plant capable of producing more than 120,000 vehicles a year, according to the company’s five-year business plan. The company aims to lift the combined sales of passenger and commercial vehicles to 1 million units in 2012, up 64% from 2007. The plant, to be built in Henan Province, is expected to come on stream in 2010. More than five new models of small commercial vehicles will be launched in the Chinese market. The firm has positioned its small commercial vehicle business as a pillar of growth under its five-year business plan through fiscal 2012. In addition to growing demand in emerging economies, operating margins on such vehicles are higher than passenger cars. Nissan plans to begin selling small commercial vehicles in Russia in September and launch production and sales in India and the U.S. in 2010. (June 9, 2008)