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Nissan to chase premium market

By Yu Qiao (China Daily)
Updated: 2006-03-25 07:14

Nissan Motor Co, Japan's second biggest carmaker, is planning a foray into China's premium car market with a slew of imported models to facilitate its expansion here.

Kayashima Yukihisa, new chief of Nissan Motor (China) Co Ltd, said the company would introduce the Nissan-brand 350Z sports car in the second half of this year and the Infiniti-brand luxury sedan in 2007 into China.

"Premium cars now have a tiny slice of China's car market. With the nation's fast economic growth, the demand for premium cars will increase rapidly," Yukihisa said.

Premium cars currently account for 3.5 per cent of the car market in China, less than 8 per cent globally, he said.

China's premium car market is mainly controlled by German brands - Audi, BMW and Mercedes-Benz, which have all started local production.

"However, Japanese brands will provide more choices for the new wealthy in China who are seeking a different lifestyle," Yukihisa said. He said that Nissan aimed to sell 8,500 imported vehicles in China this year, including 3,000 units of the Fuga luxury sedan, which was launched in China last June.

Besides the Fuga, Nissan's imported models in China include the Quest van, X-Trail and Patrol sport utility vehicles, as well as the Cima sedan.

Yukihisa said that the 350Z would retail in China for less than 600,000 yuan (US$74,600). As for the Infiniti, Yukihisa said the US-grown brand would go head-to-head with BMW, Mercedes, Lexus and Honda's Acura. Honda plans to introduce the Acura into China in June this year.

"We are studying how to differentiate the Infiniti from other rival brands in the Chinese market," he said.

However, Nissan does not expect its premium cars to achieve robust sales in China in the short-term, but plans to help promote its brand image among Chinese buyers, he said.

Nissan has set a target of lifting its total sales in China to 500,000 vehicles in the 2008 fiscal year, mainly depending on locally-made models, up from 180,000 units in 2005.

(China Daily 03/25/2006 page5)