Nissan Plans to Boost China Sales

BEIJING – Nissan Motor Co. aims to boost its car sales in China next year by as much as 15% to almost 400,000 vehicles despite the weakening economy, a senior company executive said Thursday.

“The global economic crisis’ impact on China’s economy has been fairly limited compared to the economies of the U.S. Japan and Europe,” Toshiaki Otani, a senior Nissan executive, told a small media briefing.

Mr. Otani heads Donfeng Nissan Passenger Vehicle Co., the passenger car manufacturing and sales division of the joint venture between Japan’s Nissan and China’s Dongfeng Motor Group Co.

While “it’s very difficult to read the market’s direction, we’re aiming to increase our total passenger car sales here by 40,000 to 50,000 vehicles next year,” Mr. Otani said.

That means Nissan’s sales are likely to total 385,000 to 395,000 vehicles next year, up 12% to 15% from the sales level it is likely to achieve this year. Mr. Otani said Nissan is “almost certain” to meet its 2008 sales goal in China of selling 345,000 vehicles.

Overall, he said China’s passenger car market, which has begun contracting since August, is going to grow 8% to 9% this year. While that is still respectable compared with rapid sales slides seen in the U.S. and Europe, the growth rate is down considerably from the average 24%-plus growth the market posted over the past several years.

Mr. Otani expects China’s demand for cars to continue to slow into next year, especially during its first half.

There is a possibility, he said, the market may show “zero growth,” but he believes it could grow as much as 5%.

source :Wall street journal