According to Reuters,
Nissan Motor Co.
) has revealed its plans to construct a ¥5 billion ($785 million)
plant in the Dalian city, China. The facility is a part of the
company's planned investment of ¥30 billion ($4.7 billion) in China
by the end of 2015.
The Dalian plant is jointly owned by Nissan Motor and local
partner Dongfeng Motor Group Co. It will start production in 2014
with an initial capacity of manufacturing 25,000 cars. Nissan
expects to enhance the capacity to 120,000 vehicles in 2015 and
eventually reach a target of 240,000 cars by 2017.
Nissan plans to escalate sales in China to 2.3 million vehicles
by 2015. To achieve the target, the company plans to launch 30 new
products in the region. Electric vehicles will also be introduced
with a joint venture with Venucia.
Further, the company intends to penetrate more in China with the
production of Infiniti cars at the plant in Xiangyang located in
the central Hubei province in 2014. With an investment of $315
million, the Xiangyang plant will provide tough competition to
Audi, Mercedes Benz and BMW in the luxury segment.
The auto market in the emerging economies has sufficient growth
opportunities for the automakers. Auto sales in China, in May 2012,
have soared 16% to 1.61 million. The growth was driven by
strong demand for passenger vehicles. According to China
Association of Automobile Manufacturers (CAAM), sales in China will
increase 9% in 2012. Nissan occupies a leading market share in
China with a record 21.9% hike in sales to 1.25 million
However, Nissan faces fierce competition from companies
General Motors Company
Ford Motor Co.
Honda Motor Co.
) in China.These automakers are also expanding their global
footprint in the emerging nations around the world. General Motors
plans for a new greenfield facility in the central city of Wuhan,
China, while Ford is mulling on setting up a plant in Hangzhou near
Nissan is the sixth largest automaker in the world. The company
along with its subsidiaries engages in the production and sale of
automotive products, industrial machinery and marine equipment,
primarily in Japan, North America, and Europe. The company offers
passenger cars, trucks, buses, forklifts, light commercial
vehicles, power trains and parts, as well as sales financing
Currently, Nissan retains a Zacks #1 Rank, which translates into
a short-term (1 to 3 months) Strong Buy rating. We have a long-term
(more than 6 months) "Outperform" recommendation on the stock.
FORD MOTOR CO (F): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis Report
HONDA MOTOR (HMC): Free Stock Analysis Report
NISSAN ADR (NSANY): Free Stock Analysis Report
(VLKAY): ETF Research Reports
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