Nissan Seeks to Boost its Yield in China

Nissan Seeks to Boost its Yield in China

Japanese automaker giant, Nissan Motor Co. is reported to be in plans to boost its production capacity in world's biggest vehicle market to a double level by 2012.

Japan's third-largest automaker has recently unveiled a new factory on Monday in the central Chinese city of Zhengzhou marking is plans to grab a bigger part of the world's biggest auto industry.

"Because we expect to build cars with a high level of localization, production here will promote the growth of local suppliers in the Zhengzhou area, contributing to a more robust automotive industry in this region", Nissan's CEO Carlos posted.

As per Nissan's new plan, the Company seeks to boost its annual capacity to over 1.2 million units compared to the current 670,000, Ghosn said. The new capacity is over 20% more than one expected earlier.

Nissan Motor Co. and its 44% stake holder, Renault SA of France seems to have an opposite eye to the approaching initial public offering by General Motors.

It is claimed that Nissan is eyeing to fetch over 10% of the China's automobile market, nearly double its current share of 6%.

The two Zhengzhou Nissan factories would now hail a yield of over 200,000 vehicles a year.