Nissan to Start Sport-Utility Production at New Plant in China Next Month

Nissan Motor Co., Japan’s third- largest automaker, plans to begin production at a new plant in China next month to keep pace with rising demand.

The Tokyo-based carmaker will start producing multi-purpose vehicles at a plant in Zhengzhou, eastern China, that will build 120,000 units a year from September, spokesman Mitsuru Yonekawa said today by phone.

The new plant, a joint venture with Dongfeng Motor Group Co., may ease capacity constraints at another factory in the Huadu district of Guangzhou, which builds the Dualis and X-Trail sport-utility vehicles, Yonekawa said.

The company may move production of the two models to the new plant, the Nikkei newspaper reported earlier today.

Nissan’s July sales in China rose 12 percent to 79,461 units.

To contact the reporter on this story: Makiko Kitamura in Tokyo at mkitamura1@bloomberg.net.

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