DALIAN, Liaoning – Nissan Motor will produce its high-class Infiniti car in Dalian, China, reported China Business News, citing an insider of the company.
A signing ceremony for localization of Infiniti was held in late November last year, and an Infiniti Division will be set up in Dongfeng-Nissan, said the report.
Dalian, located much closer to Japan compared with other Chinese cities, owns advantages of ports and logistics, especially for luxury carmakers, which need to import more auto parts and components to China.
To develop auto industry, the city of Dalian planned an auto industrial park in its free trade zone and launched an auto logistic center in 2010. The city also owns a modern vehicle roll on/off wharf, the first of its kind in China.
According to the insider, the Dalian government offered favorable conditions to Infiniti on taxation and provision of land.
As part of the Nissan’s mid-term business plan, the “Nissan POWER 88,” Infiniti has set a target of selling 500,000 units globally, and the Chinese market is one of the most important parts for realizing the goal.
Infiniti posted sales as 11,513 units in China in 2010, an increase of 137.3 percent on a yearly basis, only three years after its first launch in the country. China became the brand’s second largest market in 2010, said Infiniti. Sales for 2011 are expected at 20,000 units and 30,000 units for 2012. Infiniti also announced it will establish a global headquarters in Hong Kong to meet the growing luxury demands of the Chinese mainland, India and Southeast Asia markets.
Dongfeng-Nissan currently owns three production bases in China, including the Huadu plant in Guangzhou, the Xiangyang plant in Hubei, and the Zhengzhou plant in Henan.