Nissan Motor Co.’s Chinese venture reportedly more than doubled car sales in the first half of 2005 to become the nation’s fastest-growing auto producer, and is banking on new models to help it meet this year’s target.
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Reuters noted that China, once an easy profit centre providing global carmakers with double-digit margins, has become one of the industry’s most intense battlegrounds with foreign auto makers investing $US15 billion to triple capacity to over seven million cars by 2008 – sparking fears of an impending glut.
The market’s heady pace of expansion has slowed sharply with car sales growing just 15% last year after doubling in 2003 and Nissan’s venture, Dongfeng Motor Co., now intends to introduce new models to pique buyers’ interest, the report said.
“Judging by our sales growth in the first half, we became the fastest-growing auto maker in China during that period,” an unidentified senior executive at the venture told Reuters.
“In the latter half of the year, we plan to launch a new model, which we expect to be quite popular.”
According to Reuters, Dongfeng Motor Co., a 50-50 joint venture between Japan’s second-largest auto maker and China’s Dongfeng Motor Corp., said on Monday it sold 66,476 cars from January to June, versus 27,204 units in the same period of 2004.
The executive told Reuters it was sticking to a target announced in March to move 140,000 Nissan-branded passenger vehicles in 2005 despite selling less than half of the annual goal in the first half.
In 2004, Dongfeng Motor Co. undershot a target of selling 80,000 units, when it moved fewer than 61,000 cars, the report added.
