Nissan Considering Expansion in China

Nissan Motor Co. might boost its manufacture capability in China after the existing economic year, depending on market circumstances, as it looks to match up swelling demand in the world's largest automobile market.

China is vital for Nissan's productivity as it looks to spring back from a fall in demand after the international monetary disaster. But its lack of competence in the nation has constrained efforts to match swiftness with the almost 60% growth rate in the auto market there.

Nissan President and CEO, Carlos Ghosn said that the company is going to assess development pattern this year in China and then will take some decision on capacity.

He said that in the economic fourth quarter ended March 31, Nissan's sales in China increased by 48% from a year prior. But that was still sluggish than the 58% increase in the general market owing to Nissan's inadequate manufacture capability.

Nissan, in which France's Renault SA owns a 43% share, posted a working profit edge of 4.1% in the previous economic year and hopes that edge, will increase to 4.3% for this economic year. But that is still well lower the 7.3% posted in the financial year ended March in 2008.