Nissan in China: Launching Dalian plant and strengthening Infiniti brand

X-Trail & Venucia T70 support China sales

2015/11/09

Summary

Nissan in China  In October 2014, Dongfeng Nissan Passenger Vehicle Company (Dongfeng Nissan) completed the first phase of construction at its new plant in Dalian, Liaoning Province. The new plant, which launched production, is designed to build 150,000 units annually. The company started construction of the plant in 2012, investing CNY 5 billion. The new plant and the company's three other plants enable Dongfeng Nissan to supply its vehicles across China. As of September 2015, Dongfeng Nissan's annual production capacity of passenger cars in China reached 1.44 million units. The company plans to increase the annual production capacity to 1.9 million units in the feature, with expanding Dalian plant's capacity.

 In 2014, the production volume of Nissan passenger cars in China decreased 1.7% year-over-year (y/y) to 990,000 units. In January-September period of 2015, production volume decreased by 0.9%. The drop in production volume, however, was rather slight, due to the production of more than 100,000 units of the X-Trail SUV that were built at Dongfeng Nissan's new Dalian Plant, which began operations in October 2014, and at the Zhengzhou Plant. This additional production helped curtail Nissan's drop in production volume. Nissan is shifting toward selling more SUV models, for which demand is growing in China. In October 2015, Nissan launched the all-new Qashqai to further strengthen its SUV lineup.

 In January 2015, Dongfeng Nissan launched the T70 SUV under its own Venucia brand. In 2014, Dongfeng Nissan sold 114,000 Venucia vehicles, which accounted for 11% of its total sales volume. Dongfeng Nissan aims to increase sales of Venucia vehicles by 50% y/y in 2015. However, between January and September 2015, sales of Venucia vehicles decreased 2.6% y/y.

Infiniti brand launched local production of the Q50L in Nov. 2014. Later, it started a long-wheelbase version of the QX50 crossover, Infiniti's second model built locally in China. The QX50 crossover was launched in March 2015. Production volume of the QX50 was 19,000 units in January-September period of 2015.

Related reports:
  * Toyota in China: Plant renovation and parts localization speed up (Aug. 2015)
  * Sales in China drop to 1.5% in first half of 2015 (Aug. 2015)

Auto Shanghai 2015 reports (May-Jun. 2015)
  * European and U.S. OEMs unveil plug-in hybrids
  * PHVs by Japanese, Chinese and Korean OEMs
  * SUVs and concept vehicles

* Chinese market to grow 7% in 2015 (Mar. 2015)