(September 21, 2010) SHANGHAI — Nissan has announced aggressive plans for China, the world's largest car market.

Nissan will almost double its production capacity in China to 1.2 million cars by 2012, accelerating earlier plans as economic growth spurs demand, CEO Carlos Ghosn said.

“China is now the second-largest economy in the world, and our ambitions and actions are aligned with the current reality,” Ghosn said in Zhengzhou city, central China. Nissan plans to open another factory in the southern city of Guangzhou’s Huadu district in 2012, he said.

Nissan, Japan’s third-largest automaker, will build more factories and expand its facilities to meet a goal of increasing its China market share to 10 percent from 6 percent, Ghosn said, without giving a timeframe. Volkswagen AG and Nissan are among companies expanding in China, whose economy grew 10.3 percent in the quarter to June, helping boost car purchases in the world’s biggest auto market, Bloomberg News reported.

“We are systematically increasing our capacity in order to make sure we are not only keeping our market share but also trying to grow our market share,” Ghosn said at a media briefing after the opening ceremony of its second Zhengzhou factory.

The new Zhengzhou plant cost $149 million to build and has an annual capacity of 180,000 cars, Ghosn said. It will create 1,400 jobs by year-end.

Nissan makes the Teana and Sylphy sedans with Dongfeng Motor Group Co. in mainland China, where it already has three car factories and one producing engines. Mainland China doesn’t include Hong Kong, Macau and Taiwan.