Nissan Launches Sunny And Opens New Facility
News: Japanese automaker Nissan Motor , in a joint venture with Tan Chong Motor , has launched its best-selling sedan, the Nissan Sunny, in Vietnam as well as opening a new manufacturing facility. The move is part of the carmaker's plan to expand its business in the developing Vietnamese auto market. The new plant will produce the Sunny for the domestic market with an initial annual production capacity of 2,000 units in the first year.
BMI View: Vietnam's autos industry is still in its infancy as producers typically import completely knocked-down kits (CKDs), which are assembled and sold domestically. The domestic parts sector is small at present, although the government is making it a priority. Given rapid economic growth in the region, there is significant development potential for the industry, especially as less than 2% of the population owns a car.