By on May 8, 2010

Did we say that Japanese brands have to do something to stop the erosion of market share in China? Nissan took the advice and said today that they started construction of their second factory in China’s southern Guangdong Province. According to The Nikkei [sub], the factory will open in 2012 with an annual capacity of 240,000 vehicles.

The plant is part of Dongfeng Nissan, a joint venture between Nissan and Dongfeng Motor Co. Together with their first plant, Nissan will have capacity for 600,000 units in China. By end of 2012, Nissan plans to increase their total annual capacity to 900,000 units, up 70 percent from the 2009 level.

PS: Suzuki also decided to fight Japanese market share erosion in China. They will launch the Kizashi in China, a midsize sedan that is already available in Japan and North America. They will also expand their Chinese dealer network by 20 percent to 1200, says The Nikkei. We are waiting for Suzuki to bring more of its extensive its minivehicle expertise to bear on China.

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