Dongfeng Nissan plans to expand production at its Xiangfan from 120,000 units to 200,000 units annually by next August, the joint venture said last week.

Capacity constraints at the factory in Central China's Hubei province have posed a problem because the joint venture's popular Murano SUV is made at the facility.

As well, a new 240,000-unit factory in Huadu district of Guangzhou will start production in January, while its plant in Zhengzhou, capital of Henan province, will raise output from the current 100,000 to 200,000 cars.

Together the increased production will give joint venture the capacity to produce 1 million vehicles next year.