Sources reveal Nissan Motors will unveil a manufacturing plant in Dalian, China, which will be a part of $1 billion investment in China. Several other global automakers are showing interest in starting plants in China, as well.
"Nissan Motors will become a major rival for Volkswagen and Toyota in North china with the new plant. It will be cheaper and faster to ship parts to Dalian compared to Wuhan as Dalian is a major port city not that far from Japan," said Sheng Ye, Associate Research Director at a consultancy Ipsos.
For global automakers, China is increasingly becoming a major region for manufacturing, investment and marketing.
Volkswagen has been the strongest contender in eastern and northern China, having its tie up with domestic car leader SAIC Motor and FAW Group. Meanwhile, southern China has been largely dominated by Japanese rivals. To compete, Volkswagen, is building its first manufacturing plant in the Guangdong province of southern China. In the past two years, Volkswagen has grown from 12 percent of the Chinese market share to 15.8 percent.
"They will be making Nissan's more upscale sport utility vehicles (SUVs), sedans and muilti-purpose vehicles (MPVs) in the new plant. A ground-breaking ceremony has been planned for later this month," says Sheng Ye.
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