Nissan forecasts that the demand for cars in China's inland provinces will help the company compensate for its dismal sales in Chinese coastal areas. According to Kimiyasu Nakamura, the president of Dongfeng Motor Co. (Nissan's joint venture with China's Dongfeng), the soaring demand for cars in inland China is offsetting the weak demand in coastal areas. Nakamura admitted that the company has barely seen growth in overall Chinese demand this year compared to 2011. In April, Dongfeng announced that it will produce a new model every year from its China-only Venucia brand, with annual sales target of 300,000 vehicles by 2015, with five products and 250 exclusive dealers. Last year, carmakers only posted a 5.2 percent growth in sales in China -- considered the most sluggish since the turn of the century – after consumers spurned domestic brands following the Chinese government ditched tax incentives for small cars. Economists even expect the country’s economy to post its lowest growth since 1999. Because of the dropping sales in China, Nissan may have to slow down its expansion into overseas markets like Russia and Brazil.
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