Infiniti: Local output to boost share
The deal to begin local production in the city of Xiangyang has been signed by Nissan’s luxury unit Infiniti because it battles dominance of German carmakers in China’s premium segment.
The joint venture between Nissan and Dongfeng Motor Corp on May 28 signed an agreement with local government Xiangyang for producing Infiniti brand vehicles in the city where partnership now makes Nissan’s midsized Sedan Teana and the Murano SUV.
To almost double its annual production capacity in Xiangyang from current 130,000 units to 250,000 units, the joint venture said it will invest 2 billion Yuan. They will continue to produce Nissan Models and in 2014 it will start making two Infiniti cars.
Now Infiniti only builds vehicles in Japan and US. The products on sale in China are imported from Japan
The company assumes to sale 500,000 Infiniti vehicles globally by 2016 and it is also assumed that a fifth of the number will contribute by China.
It globally deliver total 150,000 units in the last year, among them near 20,000 were sold to China.
In recent years luxury car sales in China has improved. Analysts and carmakers said that though the momentum is likely slow but it still retains significant growth.
It is forecasted that China’s luxury car sales will increase 19 percent this year which is more than 1.1 million units and it will increased double of its number over the next 5 or 6 years.
It is also said that to stand out increasing competition, Infiniti still need to improve its brand awareness and dealer network.