Nissan's luxury brand Infiniti is setting up a production base in China through its joint-venture partner Dongfeng.
The long-awaited indigenisation of Infiniti will help raise sales significantly. Nissan did not unveil the details of the arrangement, however. In a statement yesterday, the Japanese carmaker only said the two Infiniti models would be produced on the mainland by 2014.
The announcement came after Dongfeng admitted last month it was in talks with Volvo for a new partnership on trucks and vans, while Nissan would give up its current partnership with Dongfeng on commercial vehicles for a tie-up on passenger cars.
Dongfeng would also help Infiniti and Renault, which has a long-term partnership with Nissan, to manufacture in China.
Infiniti, which exported only 1,000 vehicles to China when it entered the market in 2007, saw sales reach 19,075 last year. Making the car in China is expected to boost sales to 100,000 in four years, a fifth of the sales target worldwide by 2016.
The location of the production facility has yet to be revealed but it is widely expected to be at Dongfeng's plant in Xiangyang, Hubei.