Nissan targets 2 million light vehicle sales in China by 2015

Infiniti assembly starts in 2014 while a new car plant in Dalian adds capacity

2013/04/16

Summary

 In January 2013, Nissan announced its plan to separate the medium-duty and heavy-duty commercial vehicle division of DFL, its joint venture in China, in order to concentrate DFL's operations in the light vehicle business including passenger cars and LCVs. (light-duty commercial vehicles).

 In March 2013, Nissan also announced that it would maintain DFL's 2015 sales target of more than 2 million light-duty vehicles (including imports), which Nissan had announced in its medium-term management plan. Nissan also announced that it would start local production of Infiniti high-end models in 2014. Nissan resumed imports and sales of Nissan models at the end of 2011, which was mostly discontinued in 2007, aiming to boosting its marketshare in China through a synergistic effect of import, sales and local production of various models including the high-end.


 In order to achieve its 2015 sales target of more than 2 million light vehicles in China, Nissan says that it will expand its existing plants, construct a new joint venture plant and boost production capacity from about 1.38 million units in March 2013 to 1.98 million by 2014, and further to 2.1 million units.

 Concerning powertrains, Nissan announced its target to boost production capacity to more than 1.9 million units by 2015. This includes 1.6 million units from Dongfeng Nissan Passenger Vehicle, which is DFL's passenger car division, and 300,000 units or more (including medium-/heavy-duty models) from Dongfeng Automobile. Nissan is currently constructing a fuel efficient manual transmission plant in Guangzhou (Huadu District), Guangdong province slated for completion in 2013.


 Nissan's partner, Renault, reached an agreement with DFM on the construction of a passenger car plant that is capable of producing 300,000 units a year (1st-stage 150,000 units) in Wuhan, Hubei province. Renault aims to start operations in the second half of 2015 or later, currently awaiting the government's approval.


 According to LMC Automotive Forecast in January 2013, Nissan light vehicle sales in China will decrease by 5% to about 728,000 units in 2013. The British research company predicts that " In China, anti- Japanese sentiment had a negative effect on the Nissan brand's sales in 2012, and this trend will continue into 2013. We expect this problem to be eased after 2014, when the group's sales will again start growing"


Relationship between Renault-Nissan and Dongfeng Motor Group


Related Reports: Chinese OEM sales outlook 2013 (Mar. 2013)



Reorganization of joint venture business in China: Concentration on light vehicles, and to strengthen high-end models including the Infiniti

To withdraw from the medium-/heavy-duty commercial vehicle business and to concentrate on light vehicle business

 Nissan reorganized its joint venture business in China and corrected its course towards the intensification into the "Light Vehicles" business including passenger cars and LCVs. With this move, Nissan separated the medium-/heavy-duty commercial vehicle business of its joint venture company in China, DFL, and in January 2013, signed a contract with its partner in China, DFM, on the sale of joint venture's related assets.
 Based on this contract, Nissan sold the medium-/heavy-duty commercial vehicle division, Commercial Vehicle Company (headquartered in Shiyan, Hubei province) of DFL, which is owned equally by Nissan and by DFM's assets management subsidiary Dongfeng Automobile Group Co., Ltd. (DFG), to DFM through DFG.
 With this reorganization, Nissan's main joint venture in China, DFL, has brought under its umbrella four existing entities - Dongfeng Nissan Passenger Vehicle (passenger car division), Dongfeng Automobile Co., Ltd. (light vehicle/engine division) which has Zhengzhou Nissan Automobile under its umbrella, Dongfeng Motor Parts and Components Group Co., Ltd. (DFL's auto parts division), and Equipment Company (DFL's automotive trim division). In addition, for the time being, DFL's joint venture businesses related to medium-/heavy-duty commercial vehicles other than Commercial Vehicle Company, DFL including Dongfeng Xiangyang Touring Car Co., Ltd., which produces large buses and its chassis under the umbrella of Dongfeng Automobile, and Dongfeng Cummins, which produces medium-sized and large diesel engines, remain the same as of now.
(Reference) DFM and Volvo reorganize Commercial Vehicle Company, DFL
 DFM reached an agreement with Volvo (AB Volvo/Volvo Trucks) to form a strategic alliance on the production/sales business of medium-/heavy-duty commercial vehicles and signed a related agreement in January 2013. DFM is currently awaiting approval by the Chinese authorities, and expects to be approved within as soon as one year.
 The two OEMs will establish a new joint venture company with Commercial Vehicle Company, DFL, which was separated from Nissan's joint venture business in China, as a founding body. The new joint venture company, Dongfeng Volvo Truck Co., Ltd., which will also have a development center, will be launched in the second half of 2013 if all goes well. The two OEMs say that, with this alliance, they will have a great advantage of scale in the fields of development, production and purchasing.
 The new joint venture company is headquartered in Shiyan, Hubei province, the home ground of Commercial Vehicle Company, DFL. The new company is owned 55% (in-kind contribution) by DFM through DFG, which is under DFM's umbrella, and 45% (5.6 billion RMB in cash) by Volvo. By utilizing Volvo's technology including engines and DFM's manufacturing resources, the new company will market Dongfeng finished vehicles globally and improve development capability of medium/heavy-duty commercial vehicles/buses/specially equipped vehicles, and powertrain.
 Before the approval of the joint venture company, the two OEMs plan to unveil their joint venture's first model, a heavy-duty truck, at the 2013 Shanghai Motor Show to be held in April 2013. They also plan to start producing the model under the Dongfeng brand at Volvo's plant in Brazil earlier than in China.

 

Enhancement of sales of high-end models in China: To start local production of the Infiniti models in 2014 and to resume import/sales of Nissan models

 Nissan will enhance sales of high-end models in China. In recent years, except for 2012, when anti-Japan demonstrations occurred, local sales of imported Infiniti models increased substantially. Nissan will start production by 2014, at Dongfeng Nissan Passenger Vehicle's Xiangyang plant (Hubei province), which produces the Teana/Murano. The target is to sell more than 100,000 units a year by 2016 and an additional 200,000 units in 2017.
 In 2012, Nissan launched the Infiniti M (successor of the Fuga, a Nissan brand model), which is a long-wheel-base model designed exclusively for China, and the Infiniti JX in China. Combining these models with existing imported models (Infiniti G/EX/QX/FX), Nissan has offered a full lineup of the Infiniti. During the four years from 2012, Nissan will redesign all existing models of the Infiniti (including facelift) and will add at least four new Infiniti models that come with a new engine and transmission in order to increase its share of the high-end market.
 In order to boost sales, Nissan will increase exclusive dealers for the Infiniti in China mainly in urban areas along the coastal area. Nissan will increase the number of dealers from about 25 at the beginning of 2011 to 100 through 2013 with a plan to further increase to 128 by the end of 2015.
 Before this, in May 2012, Nissan transferred the headquarter functions of Infiniti from Japan to Hong Kong, a gateway to China. With this transfer of the Infiniti brand, Nissan enhances product planning and marketing that meet local consumers' needs.

 

 Nissan also resumed import/sales of its high-end models at the end of 2011, which had been discontinued in 2007. First, Nissan started taking orders for the latest (4th-generation) Quest of a high-end MPV, at some of Nissan's dealers (13 dealers in December 2011) at the end of 2011 (the model was officially launched in February 2012. the selling price is 668,000 RMB). Nissan also released the GT-R, a high-end sports car, in March 2013. In addition, Nissan is said to start importing/selling the 370Z, a high-end sports car in 2013.
 In February 2012, Nissan also started import/sales of the 6th-generation Patrol high-end SUV through Zhengzhou Nissan Automobile, its affiliated joint venture company (Nissan started taking orders in November 2011).

 

 



Preparation of a production structure after reorganization: Enhancing plants in Southern and Central China and building a new plant in Dalian in Northeastern China

 Nissan adjusted its strategy in China to concentrate on light vehicles, currently boosting production capacity in order to achieve its 2015 sales target of more than 2 million units (including imports).


 Concerning passenger cars, Nissan expanded its existing plants in Guangzhou, Guangdong province in South China and in Xiangyang, Hubei province and in Zhengzhou, Henan province in Central China, and started the construction of a new passenger car plant that is capable of producing 300,000 units a year in Dalian, Liaoning province in Northeastern China in June 2012. (The Zhengzhou existing plant produces passenger cars and light-duty trucks/pickups.)

 With regard to LCVs, Nissan expanded its existing plants in Xiangyang, Hubei province and Changzhou, Jiangsu province in East China and Dongfeng Automobile built a new joint venture plant for Microtrucks in Shouguang city, Shandong province in East China.

 With these moves, Nissan's production capacity of light vehicles in China will increase from about 1.38 million units in March 2013 to 1.98 million units by 2014, and further to 2.1 million units in the medium run.


 As for powertrain, DFL's passenger car division, Dongfeng Nissan Passenger Vehicle, plans to build production capacity for 1.6 million engines a year by 2015. In addition, Dongfeng Automobile, subsidiary of DFL, targets an increase in production capacity of small, medium-sized, and large engines including diesel engines to more than 300,000 units by 2014. In addition, under its medium-term management plan until 2015, DFL plans to build a plant for fuel-efficient manual transmissions in Guangzhou (Huadu District), which is scheduled to be completed in 2013.

Nissan: Joint production of vehicles in China

(1,000 units)
Main type of model Production of passenger cars
(excluding commercial vehicles)
Annual production capacity
2011 2012 March 2013 Plan
Dongfeng
Nissan
Passenger
Vehicle
Guangzhou Huadu first plant Sedan, hatchback, MPV 519 542 330
(January 2012)
670
(short term)
Guangzhou Huadu second plant 270
(January 2012)
Xiangyang plant,
Hubei prov.
Teana/Murano (Production of the Infiniti FX and others will begin in 2014) 151 92 200 250 (by 2014)
Dalian (new) plant, Liaoning province SUV (initial plan) - - (Construction of a plant has begun) 150 (2014)→
300 (future)
Dongfeng
Automobile
Co., Ltd.
Zhengzhou
Nissan
Automobile
Zhengzhou second (new) plant X-trail/Qashqai, Venucia D50/R50, NV200/passenger car including Succe 197 170 180 *450
Zhengzhou Zhongmu (first) plant LCV including SUV/MPV, Pickup other Dongfeng Nissan Passenger Vehicle's models) *98
Dongfeng Changzhou Automobile Changzhou plant, Jiangsu province Microvan (Just For CV03) - 2 *50 *100(2013)→
*200(by 2014)
directly-managed plant Xiangyang light truck plant Light truck
(including Nissan Cabstar)
- - *180 n.a.
Xiangyang light bus plant Light bus - - *30 n.a.
Dongfeng Xiangyang Touring Car New-energy large bus plant Large EV/HV bus/chassis - - *2 (the other,
chassis
is 5)
n.a.
Shandong Dongfeng Kama Shouguang plant, Shandong province Microtruck - - *50 n.a.
Total 866 807 *1,390 *1,982
(by 2014)
→ *2,132
(of which) Light vehicle n.a. n.a. *1,388 *1,980
(by 2014)
→ *2,130
(Reference) Renault's plants in China
Main type of model Passenger car production
(excluding commercial vehicles)
Annual production
capacity
2011 2012 Mar. 2013 Plan
Dongfeng Renault Automobile Wuhan plant SUV/MPV (initially when operations starts), sedan/hatchback
(additionally introduced)
- - (Awaiting approval) 150 (in the second half of 2015 orlater)
→300
(Former) Sanjiang Renault Automobile Xiaogan plant Auto parts
(formerly, Microvan/MPV)
0 0 (Currently being reorganized
from a passenger car plant
to an auto parts plant)

(Note) Figures with * include commercial vehicles. Figures without * are passenger cars only.

 

Vehicle production system: To be increased to 1.9 million units by 2014 and further to 2.1 million units

Dongfeng Nissan Passenger Vehicle: to prepare production structure for sales of more than 1.3 million units in 2015

▽ Dongfeng Nissan Passenger Vehicle started operations of its second plant in Guangzhou, in December 2011 to boost production capacity to 600,000 units a year
 In December 2011, Dongfeng Nissan Passenger Vehicle started operations of a second passenger car plant that is capable of producing 270,000 units a year in Guangzhou (Huadu District), Guangdong province (four months earlier than originally planned) along with the start of production of the New Tiida and other models. Dongfeng Nissan Passenger Vehicle boosted combined production capacity with the existing (first) plant in Guangzhou to 600,000 units a year. In December 2011, Dongfeng Nissan Passenger Vehicle announced that it would further increase its production capacity in Guangzhou to 670,000 units, but has not revealed its progress until March 2013. (In addition, it is reported that Dongfeng Nissan Passenger Vehicle plans to build a third passenger car plant in Guangzhou (Huadu District).)
 The total area of the Guangzhou second plant is 1.4 million square meters (total investment: 5 billion RMB). The plant has stamping/welding/painting/resin molding/assembly facilities. Dongfeng Nissan Passenger Vehicle introduces an integrated management of the second plant with the existing Guangzhou (first) plant and a flexible production system.
▽To build a new passenger car plant that will start operations in 2014 to prepare production capacity of 300,000 units a year in Dalian, Liaoning province
 In June 2012, Dongfeng Nissan Passenger Vehicle started the construction of a new passenger car plant in Dalian (tax-protected zone), Liaoning province. The new plant will start operations in 2014, beginning production of Nissan models. The plant will have production capacity of 150,000 units in the 1st-stage construction, which will be boosted to 300,000 units in the 2nd-stage construction. The initial production model is the Murano/X-Trail SUV.
▽To boost production capacity of a passenger car plant in Xiangyang, Hubei province to 250,000 units to prepare production of the Infiniti models
 Dongfeng Nissan Passenger Vehicle will make an additional investment of 2 billion RMB to expand the Xiangyang plant in Hubei province including the preparation of production of the Infiniti, which will begin in 2014. The production capacity of the Xiangyang plant will be increased from about 200,000 units in March 2013 to 250,000 units.

 

Dongfeng Automobile: to boost production capacity in Eastern China/Central China in order to achieve 2014 sales target of more than 500,000 units

 In its medium-term business plan (New 315 plan) during the five years through 2014, Dongfeng Automobile aims to sell more than 500,000 vehicles (including exports of 100,000 units) in 2014 including Zhengzhou Nissan Automobile under its umbrella and to be among the top two OEMs in terms of share of the light commercial vehicle market in China. Dongfeng Automobile is also targeting the production and sale of more than 300,000 units of powertrain a year.

 

▽Zhengzhou Nissan Automobile expands its two plants in Zhengzhou, Henan province, boosting production capacity to 278,000 units a year in 2013
 In order to achieve its 2013-2015 production/sales target of 350,000-400,000 units a year (announced in June 2011), Zhengzhou Nissan Automobile boosted the production capacity of the two Zhengzhou plants to 278,000 units a year, Zhengzhou Nissan Automobile is planning a further increase to 450,000 units. In March 2013, the construction of a new painting plant has already begun.
 In March 2013, Zhengzhou Nissan Automobile boosted the production capacity of the second (new) plant in Zhengzhou (Economic & Technical Area), Henan province, from 140,000 units at the start of operations in September 2010 to 180,000 units a year. The land area of the second plant is 600,000 square meters. The plant has stamping/welding/painting/assembly plants. In March 2013, the second plant produces its original Succe/Nissan NV200 and also manufactures Dongfeng Nissan Passenger Vehicle's SUV (Quashqai/X-Trail) and Venucia joint venture model (D50/R50), production of which was transferred from Dongfeng Nissan Passenger Vehicle's Guangzhou main plant.

 

 In March 2013, Zhengzhou Nissan Automobile also produces Dongfeng Nissan Passenger Vehicle's MPVs/SUVs and pickups. Zhengzhou Nissan Automobile boosted the production capacity of the Zhongmu (existing) plant in the suburbs of Zhengzhou from 60,000 units at the end of 2011 to 98,000 units. (which Zhengzhou Nissan Automobile is reported to be planning a further increase to 180,000 units.)
▽Dongfeng Automobile prepared production capacity of 210,000 LCVs and 2,000 new-energy large buses a year in Xiangyang, Hubei province
 In the second half of 2012, Dongfeng Automobile boosted the production capacity of an LCV plant in Xiangyang, Hubei province by 60,000 units to 180,000 units a year; the combined production capacity of light commercial vehicles with an adjacent Xiangyang (existing) light bus plant increased from 150,000 units to 210,000 units a year in Xiangyang. (Dongfeng Automobile invested a total of 494 million RMB in the expansion of the plant.)
 At the same time, Dongfeng Automobile started operations of an attached stamping plant in which it had also invested 132 million RMB. Before this, in April 2012, Dongfeng Automobile completed the construction of and started operations of a new welding plant (one line) and a new assembly plant for light commercial vehicles (the total investment in this construction is worth 102 million RMB).

 

 In 2012, Dongfeng Automobile also started operations of Dongfeng Xiangyang Touring Car's new-energy large bus plant, which it started building in Xiangyang, Hubei province in August 2010 (the investment in the construction of the plant is worth 278 million RMB). In March 2013, Dongfeng Automobile has production capacity of 5,000 units of chassis for large new-energy vehicles and 2,000 units of large new-energy buses a year.
 Dongfeng Automobile is currently talking with Netherlands-based VDL group on a business partnership on new-energy buses. In March 2012, the VDL group sent a delegate to visit Dongfeng Automobile's Xiangyang new-energy large bus plant.
▽Dongfeng Automobile prepared production capacity of 50,000 Microtrucks a year jointly with Shandong Kama Automobile in Shandong province
 In September 2011, Dongfeng Automobile established with Shandong Kama Automobile Co., Ltd., its affiliated company of which it holds a 10% stake, and others a new joint venture company, Shandong Dongfeng Kama Automobile Co., Ltd., in East China (Shouguang, Shandong province). The new company is capitalized at 275 million RMB; Dongfeng Automobile provided 40% in cash, Shandong Kama Automobile 51% with in-kind contribution of plant site and facilities, and the management of the joint venture company 9% in cash.
 The joint venture plant is located within the same site of the (new) plant of Shandong Kama Automobile in Shouguang Development Zone. The plant already started operations, mainly producing pickups, particularly, Microtrucks and marketing them under Dongfeng brand. The production capacity in March 2013 is 50,000 units a year, which Dongfeng Automobile plans to increase in the future.
▽Dongfeng Automobile prepares production capacity of 50,000 Microvans a year at its Changzhou subsidiary in Jiangsu province
 In March 2013, Dongfeng Automobile prepared production capacity of 50,000 Microvans a year at the plant of its Changzhou subsidiary (Dongfeng Changzhou Automobile) in Jiangsu province. In addition, the light truck/pickup production of the Changzhou plant was transferred to the Xiangyang plant, in Hubei province. The Changzhou plant is currently producing mainly the Just For CV03 Microvan (development code: W03).
 The preparation of the Changzhou plant by Dongfeng Automobile is behind the schedule. Under the original plan, in order to achieve the 2014 sales target of 200,000 mini vehicles (engine: 200,000 units)/ 5% share of the mini vehicle market in China, Dongfeng Automobile prepared a production capacity of 100,000 mini vehicles a year in the 1st-stage construction by 2012 (investment: 450 million RMB). Dongfeng Automobile said that it would boost the capacity to 200,000 units per year by improving body production facilities in the 2nd-stage construction by 2014 (investment: 653 million RMB).

 

Enhancement of powertrain production: Dongfeng Nissan Passenger Vehicle to boost production capacity of engines to 1.6 million units a year in 2015

Dongfeng Nissan Passenger Vehicle: to boost production capacity of engines to 1 million units a year in Guangzhou, currently preparing production capacity of 600,000 units in Zhengzhou

▽As the Chini plant in (Huadu) started operations, Nissan boosted production capacity of engines in (Huadu) to 1 million units a year
 In September 2012, Dongfeng Nissan Passenger Vehicle completed the construction of a Chini engine plant (Huadu Motor City Chini Park) in Guangzhou. The plant started production of Nissan engines including the HR series (displacement: 1.5/1.6-liter) and MR series (1.8/2.0-liter). The Chini plant is capable of producing 520,000 units a year. With this plant, Nissan's production capacity of engines in Guangzhou has increased from 480,000 units by the existing (Huadu) plant in Guangzhou to 1 million units.
 Dongfeng Nissan Passenger Vehicle is currently preparing local production of core components of engines including cylinder heads, crank shafts, and connecting rods at the Chini plant in Guangzhou with the target year set at 2015.
▽To prepare production of 600,000 engines in Zhengzhou, Henan
 In October 2011, Dongfeng Nissan Passenger Vehicle started the construction of a new engine plant (Zhengzhou Engine Factory, Dongfeng Nissan Passenger Vehicle) that is capable of producing 600,000 units a year in Zhengzhou, Henan province, where the consignment production of its original SUV began. Details on the progress have not been announced. Under the 1st-stage construction plan (building area: 123,800 square meters), casting/machining/assembly plants were included. Operations were scheduled to begin in January 2013.

Dongfeng Automobile to prepare production of more than 300,000 units of powertrain a year by 2014

 In its five-year medium-term business plan to 2014, Dongfeng Automobile said that it would boost the production capacity of the affiliated powertrain manufacturer to more than 300,000 units by 2014. In March 2013, the production capacity amounted to about 260,000 units - about 200,000 diesel engines for light/medium/heavy-duty commercial vehicles by Dongfeng Cummins (Xiangyang, Hubei province) under its umbrella and about 60,000 units by Dongfeng Light-duty Engine (Shiyan, Hubei province), which is a joint venture light engine plant with DFL.

▽Dongfeng Automobile to boost the production capacity of a joint venture light engine plant with DFL to 150,000 units a year in Shiyan, Hubei province
 DFL is said to be planning to gradually boost the production capacity of Dongfeng Light-duty Engine Co., Ltd., a joint venture light engine plant subsidiary of Dongfeng Automobile in Shiyan, Hubei province from the current approximately 60,000 units to 100,000 units and further to 150,000 units.
 In November 2008, the light engine plant started production including Nissan (displacement 3.0-liter ZD30 diesel model)/Dongfeng (2.0-3.0-liter) engines. In March 2013, DFL is currently supplying engines for light-duty commercial vehicles/SUVs including Zhengzhou Nissan Automobile (Zhengzhou plant)'s Cabstar/ Dongfeng Automobile (Xiangyang plant)'s Yufeng (launched in 2012).

 

Dongfeng Nissan Passenger Vehicle to prepare production of manual transmissions in Guangzhou

 In July 2011, at the presentation of its medium-term business plan, DFL announced that it was planning to build a plant for energy-efficient manual transmissions in the adjacent site of Dongfeng Nissan Passenger Vehicle's Huadu plant. The plant was scheduled to be completed in 2013. No details of the progress have been announced.

(Reference) JATCO to boost production capacity of the Guangzhou CVT plant to 900,000 units a year by the spring of 2013
 JATCO, Nissan's transmission subsidiary, made an additional investment of about 20 billion JPY (about 1.5 billion RMB). JATCO will boost the production capacity of its Guangzhou CVT plant (JATCO (Guangzhou) Automotive Transmission Ltd.) for Dongfeng Nissan Passenger Vehicle from 730,000 units in 2012 to 900,000 units a year by the spring of 2013. JATCO is said to be planning to boost the local-content ratio from over 75% (in November 2011) to over 90% by the end of 2012.

 

 



Nissan's group company, Renault's business in China to build a joint venture plant with DFM

 Renault will reorganize Renault's existing joint venture plant in China, Sanjiang Renault Automobile (Sanjiang Renault Automobile Co., Ltd.), jointly with DFM (Nissan's partner in China) to found a new joint venture company (Dongfeng Renault). The headquarters will be transferred to Wuhan (in the Southwestern part of Hanyang District Huangjinkou Industry Park), Hubei province. The existing plant in Xiaogan city, Hubei province is planned to be reorganized as an exclusive plant for powertrain including engines/transmissions.

 

Renault to build a new passenger car joint venture company with DFM in Wuhan, Hubei

 Renault will reorganize Sanjiang Renault Automobile, currently pressing ahead with a construction project of a new joint venture passenger car plant in Wuhan, Hubei province in Central China with Nissan's partner in China, DFM. In March 2013, Renault is awaiting various approvals from the government's related sections. In addition, information on the review in the environmental assessment was made public by the Wuhan government (Wuhan Environmental Protection Bureau), where the new plant is planned to be located.
 The joint venture company is named tentatively as Dongfeng Renault (Dongfeng Renault Automobile Co., Ltd.). It is located in Hanyang District (Southwestern part of Huangjinkou Industry Park) in Wuhan. The total investment is worth 11 billion RMB (7.2 billion RMB in the 1st-stage construction). The passenger car plant also has a stamping/welding/painting/molding/assembly plant. It also has an engine plant and an R&D center. The total land area of the new plant is 1.794 million square meters. Of the area, 416,000 square meters are for the south plant and 1.378 million square meters for the north plant. The new plant employs 3,544 workers. The production capacity in the 1st-stage construction is 150,000 units a year. The plant mainly produces SUVs/MPVs. Through the 2nd-stage construction, the plant will additionally produce sedans and hatchbacks. The number of operating days is 250 per year. The construction of the plant is scheduled to last for 28 months. Production is expected to begin in the second half of 2015 or later. The first local production model is the Koleos SUV. Plans for the added production of new-energy vehicles in the future have been reported.

 

 In recent years, Renault's sales of imported cars have steadily been increasing in China. In 2012, Renault sold 29,724 units, up over 22.4% year-on-year, with a target to sell more than 100,000 units in 2015. Renault will also increase the number of its dealers in China from 95, the number at the end of 2012, to 115 by the end of 2013 (it increased by 15 in 2012). Concerning the introduction of new models, Renault plans to launch new models such as the Fluence/Latitude/Clio in China in 2013.

 

 In the meantime, Renault plans to reorganize its existing joint venture Xiaogan passenger car plant (Sanjiang Renault Automobile) into an exclusive powertrain (engine/transmission) plant after the new joint venture passenger car plant is established.

 

 



(Reference) Nissan's passenger car sales and targets in China

Nissan: Passenger car sales and target of each model by OEM in China

(unit)
Manufactory
(OEM)
Model Sales volume of Passenger car Sales target (Note 1)
2011 2012 Jan.-Feb.
2012
Jan.-Feb.
2013
2013 2014-
Dongfeng
Nissan
Passenger
Vehicle
Total 808,588 772,995 136,662 110,089 1,000,000
(essential target:
900,000)
Over 1,300,000
(in 2015)
(Note 2)
Xiangyang
plant
New Teana 156,165 90,072 18,640 2,156 Including
over 93,000
units of
Venucia
models
n.a.
Murano 858 946 98 22
Infiniti series (Local production will begin in 2014)
Guangzhou
plant
New Sunny 156,954 137,820 27,936 21,474
Tiida 3box 1,830 1 1 8
Tiida 2box 23,398 3 3 3
New Tiida 2box 86,680 144,212 28,606 17,293
March 16,225 6,720 1,102 176
Livina 98,770 87,724 17,444 3,859
Livina Geniss 2,713 1,857 465 179
Sylphy 125,427 78,233 16,601 11,853
New Sylphy - 55,590 - 23,512
Zhengzhou
Nissan
Automobile
second plant
(Consignment
production)
Qashqai (Dualis) 111,304 105,143 19,998 13,118
X-Trail 28,264 22,869 5,768 1,979
Venucia D50 - 30,193 - 8,218
Venucia R50 - 11,612 - 6,239
Dongfeng
Automobile
Total 51,509 48,795 8,332 7,071 *294,000 *500,000
(in 2014)
Xiangyang/ Changzhou/
Shouguang plant total
- 1,192 - 513 *173,000 n.a.
Just For CV03 - 1,192 - 513 n.a. n.a.
Zhengzhou Nissan Automobile
(other than consignment
production by Dongfeng
Nissan Passenger Vehicle)
51,509 47,603 8,332 6,558 *121,000 *350,000-
*400,000
(by 2015)
Paladin 8,199 5,361 1,049 744 n.a. n.a.
Oting 2,312 1,267 216 143
Yumsun 1,444 860 208 175
Succe 24,148 25,157 4,585 3,817
NV200 15,406 14,958 2,274 1,679
Grand total 860,097 821,790 144,994 117,160 *1,294,000 *over 2,000,000
(in 2015)

Note 1: Figures with * include commercial vehicles. Figures without * are passenger cars only.
Note 2: Dongfeng Nissan Passenger Vehicle's 2015 sales target is also reported to be up to 1.5 million units.

 

 



Production Forecast by LMC Automotive: Nissan light vehicle production forecast by country

(LMC Automotive、February 2013)

 According to LMC Automotive Forecast in February 2013, Nissan light vehicle productions in 2013 will increase to about 4,955,000 units by 4.7% and to 5,719,000 units in 2016. Its ratio of Japanese production will decrease to 16.3% in 2016 from 27.5% in 2012, while the Japanese company will expand productions in BRICS countries after 2014. LMC Automotive said that "Nissan's relocation of the Murano and Rogue SUV models from the Kyushu plant in Japan to North America aims to mitigate currency risk. Idle capacity at the Kyushu plant will be removed from 2014 allowing the plant to remain at full utilisation after the production shift. "

Nissan light vehicle productions by country and by make

(Units)
COUNTRY GLOBAL MAKE 2010 2011 2012 2013 2014 2015 2016
Total 4,049,277 4,531,360 4,730,780 4,955,062 5,288,048 5,448,546 5,718,714
Brazil Nissan 18,155 33,358 28,779 34,061 111,054 122,969 128,470
China Infiniti 0 0 0 0 0 19,861 38,076
Nissan 757,645 891,264 747,581 778,322 864,538 937,121 1,019,191
China Sub-total 757,645 891,264 747,581 778,322 864,538 956,982 1,057,267
India Nissan 92,922 165,955 169,843 208,611 229,181 267,509 326,422
Indonesia Nissan 34,572 43,606 88,255 106,722 115,901 116,305 124,754
Iran Nissan 63,352 65,276 43,680 37,365 39,003 45,171 46,606
Japan Infiniti 141,634 145,441 123,086 186,968 191,174 201,386 207,313
Nissan 1,150,106 1,117,746 1,179,811 1,014,129 793,280 698,905 722,234
Japan Sub-total 1,291,740 1,263,187 1,302,897 1,201,097 984,454 900,291 929,547
Korea Nissan 0 0 0 0 51,309 53,790 59,695
Malaysia Nissan 29,745 25,656 40,841 53,395 54,520 55,628 58,233
Mexico Infiniti 0 0 0 0 0 33,151 55,252
Nissan 494,581 607,098 685,035 740,068 758,603 724,442 733,763
sMexico Sub-total 494,581 607,098 685,035 740,068 758,603 757,593 789,015
Philippines Nissan 4,666 4,443 4,281 6,959 7,553 7,971 8,264
Russia Infiniti 0 0 3,823 6,942 6,199 186 0
Nissan 24,486 43,605 46,700 93,066 148,470 187,958 192,360
Russia Sub-total 24,486 43,605 50,523 100,008 154,669 188,144 192,360
South Africa Nissan 25,633 23,968 30,174 42,262 47,225 48,090 46,047
Spain Nissan 67,207 93,918 94,904 76,351 117,945 175,065 178,437
Taiwan Nissan 37,001 43,311 36,384 43,607 49,197 50,010 52,096
Thailand Nissan 175,070 185,204 253,412 279,237 285,425 283,677 303,801
UK Infiniti 0 0 0 0 0 41,951 54,803
Nissan 423,262 480,485 511,172 477,796 486,657 453,483 456,622
UK Sub-total 423,262 480,485 511,172 477,796 486,657 495,434 511,425
USA Infiniti 3,466 0 32,578 44,476 43,342 43,112 45,424
Nissan 505,774 561,026 610,441 724,725 887,472 880,805 860,851
USA Sub-total 509,240 561,026 643,019 769,201 930,814 923,917 906,275
Source:LMC Automotive "Global Automotive Production Forecast (February, 2013)"
(Note) 1. Data indicate figures of only small-size vehicles, including passenger cars and light commercial vehicles with a gross vehicle weight of under 6 tons.
2. All rights reserved. Reproduction of any data will require permission of LMC Automotive.
3. For more detailed information or inquiries of forecast data, please contact LMC Automotive.

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