Japan’s Nissan Motor Co plans to invest about $900 million to boost vehicle-making capacity in China by 40 percent by 2021 – part of a 60 billion yuan ($8.73 billion) strategy to become a top three player in the world’s largest auto market.
BEIJING (Reuters) – Japan’s Nissan Motor Co ( 7201. T) plans to invest about $900 million to boost vehicle-making capacity in China by 40 percent by 2021 – part of a 60 billion yuan ($8.73 billion) strategy to become a top three player in the world’s largest auto market.
Nissan and its Chinese joint-venture partner Dongfeng Group ( 0489. HK) intend to invest roughly $900 million for the envisioned manufacturing capacity expansion over the next few years, according to a person close to the plan. That would boost Nissan’s vehicle production capacity in China to as many as 2.1 million vehicles a year.
The investment is part of a previously disclosed multiyear plan to expand Nissan’s sales in China.
China’s auto market has been dominated by General Motors Co ( GM. N) and Volkswagen AG ( VOWG_p. DE) for nearly two decades, with each selling 4 million vehicles last year.
Nissan, along with Toyota Motor Corp ( 7203. T), Ford Motor Co ( F. N), and Honda Motor Co ( 7267. T), lag far behind, each selling 1 million-plus vehicles a year.
