Nissan Motor is planning to build a new plant in Mexico as part of efforts to increase its presence in emerging markets, following its production upgrades in China, India and Russia, according to a Japanese report.

Nissan is making final plans to locate the new plant near its existing plant in central Mexico, which annually makes about 600,000 units. The new plant will produce compact cars designed for emerging countries and is also expected to become an export base for the United States, automaker sources told Kyodo News.

Honda and Mazda are also planning to build new plants in Mexico, because auto parts imports into and finished car exports from the country are duty free under free trade agreements it has concluded with many other countries, Kyodo noted.

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