TOKYO (Kyodo) -- Nissan Motor Co. will build a new plant in China to boost its annual production capacity there to 300,000 units and aims to raise its scale of production in the country by over 20 percent, company sources said Tuesday.
The move comes as Nissan has seen slower sales growth in the United States, its top-earning market. Other auto giants including Toyota Motor Corp. also plan to expand production in the world's largest auto market.
According to the sources, Nissan plans to expand production lines at its existing plants in China and boost its operations there through a joint venture with Dongfeng Motor Group Co.
The envisioned facility will be Nissan's ninth plant in China and is likely to be located in the central Chinese province of Hubei, the sources said.
Nissan will also expand a production line at Dongfeng's existing plant in Jiangsu Province, in the country's eastern part, to build 120,000 cars a year.
Nissan -- under an alliance with Renault SA and Mitsubishi Motors Corp. -- currently has a production capacity of 1.7 million vehicles a year in China.
Under its midterm plan through fiscal 2022, Nissan will invest roughly 1 trillion yen ($9 billion) in the Chinese market and aims for sales of 2.6 million units, nearly double from 2017.