Nissan to invest $8 billion in China, will introduce 30 new models

July 28, 2011May 21, 2012 Omar Rana

Nissan’s CEO Carlos Ghosn yesterday unveiled a new business plan for China. Along with local partnership Dongfeng Motor Co., Ltd. Nissan plans to raise annual sales 70 percent to more than 2.3 million vehicles by 2015. To meet this goal, the joint venture will invest 50 billion yuan ($8 billion) as it introduces 30 models, adds 1,000 dealerships and plans to sell locally built electric vehicles.

China is a key par of Nissan’s Power 88 plan which is focused on raising the company’s global market share and profit margins to 8 percent by fiscal 2016.

“We have today about 6.2 percent market share in China and we know we have a shortfall in terms of supply–we cannot provide as many cars as the market is demanding,” Ghosn said. “I would say the pent-up demand on our product today is above 7 percent already. We want to reach 10 percent.”

The first five China-only models will be introduced next year with annual targets of 300,000 within five years. The vehicles will be sold under the Venucia brand, which will also start selling an electric model by 2015.

“We can introduce the technology, we can introduce the zero-emission cars, and we can introduce them in the best way possible to make them competitive,” Ghosn said.

– By: Omar Rana