Japanese car giant, Nissan, has opened its latest factory in China, declaring it intends to double its capacity in the country by 2012.
It aims to up its market share from 6 to 10 per cent, said the chief executive of the Nissan Renault group, Carlos Ghosn, at the launch.
The new facility should help Nissan reach its target of producing 1.2 million units per year.
A host of other manufacturers have made similar moves recently to capture a bigger slice of the world’s largest auto market.
But analysts warn forecasts of 17 million unit sales this year could be rather optimistic.
The new plant in Zhengzhou marks the creation of a third production base in China for Nissan.
However, Carlos Ghosn denied rumours that Nissan Renault was interested in buying shares in General Motors’ upcoming IPO.
GM’s Chinese partner, SAIC, has been mentioned as another potential investor although this would be politically sensitive.