Nissan unveils Infiniti brand in China

BEIJING, Nov 2 (Reuters) Nissan Motor Co., Japan's second-biggest auto maker, on Thursday unveiled its Infiniti luxury brand in China, a market that is increasingly becoming saturated in the premium segment.

The first models under the Infiniti brand, which has sold more than one million units since being launched in 1989, will go on sale in China next summer, Nissan (China) Investment President Yukihisa Kayashima told reporters in Beijing.

Two models will initially be sold, a sedan and a sport utility vehicle, rising to five in 2008, he said, declining to give pricing or forecast sales.

The cars will be built in Japan, and Kayashima said there were no plans at present to manufacture in China.

The Infiniti will be pitted against other premium marques such as BMW, DaimlerChrysler's Mercedes-Benz and Volkswagen AG's Audi brand.

''Competition is getting fierce, but the market is expanding,'' Kayashima said. ''In that sense, we still have a good future.'' The first dealership -- in the booming coastal city of Shanghai -- began being built last month, he said.

Nissan, held 44 percent by France's Renault SA, is also eyeing the emerging Russia market for its high-end brand.

Nissan has made China a key pillar of its growth plans. It aims to increase sales in China to 300,000 units in 2007, up 50 percent from this year.

REUTERS DKS DS1653