Nissan Expects to Sell 1 Million Autos in China this Year after Rebound in Demand

Nissan Motor Co. projects a million sales of passenger vehicles in China, as demand for cars rebounds.

According to Bloomberg, Nissan's China head Jun Seki said in an interview Wednesday that the recovery in auto demand in China, which is the world's largest auto market, is boosting sales and will lead to a "very good" October sales report. Last year, the giant automaker sold 952,400 cars in China.

China Daily reported that the automobile sales in China saw a rebound in September due to government's stimulus policies to bring the industry back to live. According to the China Association of Automobile Manufacturers (CAAM) auto sales went up 2.1 percent to 2.02 million. From January to September auto sales increased 0.3 percent to 17.06 million. In September, passenger car sales rose 3.3 percent to 1.75 million, while business car sales went down 4.9 percent to 273,600 year on year.

Nissan's Lannia could be one of the leading cars that would help the automaker reach its expected 1 million a year sales in China as it recently been launched in the country. Financial reported October 26 that Nissan has officially started selling the Lannia sedan in China through its Dongfeng Nissan Passenger Vehicle Company.  

Meanwhile, according to China Passenger Car Association the rebound in China's auto sale came after the government slashed a purchase tax on small passenger vehicles in the start of October, effective until the end of next year. That tax cut is for buyers of cars with 1.6-liter engines or smaller. That category covers 70 percent of cars sold in China.

Another automaker sees this rebound a boon. Honda Motor China chief Seiji Kuraishi expects their company to meet their goal of 900,000 unit sales this year in the county. Honda will monitor the market before taking any further steps. However, Honda's Chairman Fumihiko Ike said industry wide sales in the country will grow in a slower pace next year.