Nissan, the biggest Japanese automaker in China plans to spend $785 million to build a plant in Dalian, China extending its reach in the world’s largest auto market, Reuters reports.

The facility, jointly owned by Nissan partner Dongfeng Motor Group Co.(0489.HK), is to begin production in 2014 with an initial capacity of 25,000 cars.

The new plant is part of Nissan’s 30 billion yuan investment in China by end-2015, vying withGeneral Motors and other car companies also looking to the Asian country for growth.
Nissan already operates a factory in China with Dongfeng Motor Group Co.

Nissan is counting on China to help drive growth and challenge Volkswagen AG (VOW)’s Audi, Daimler AG (DAI)’s Mercedes-Benz and Bayerische Motoren Werke AG.

Car sales in China rose 22.6 percent in May from a year earlier, extending the double-digit gain in the previous month as new models premiered at the Beijing autoshow started to hit the showrooms.


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