Japan's Nissan Motor Co plans to double its production capacity in China to 1.2 million units by 2012, as it aims for a 10 percent share of the world's biggest auto market.   

The new plan is 20 percent above Nissan's earlier target, underscoring the car maker's strong interest in China, which has been a major bright spot for many automakers as the global industry struggles to recover from a steep downturn.

Nissan, 44 percent held by France's Renault SA, runs an auto venture with Dongfeng Motor Group Co, which on Monday announced the opening of its first sport utility vehicle (SUV) plant in the central Chinese city of Zhengzhou.   

"Among the Japanese carmakers, which represent 20 percent of total sales in China, Nissan holds the number one position," chief executive Carlos Ghosn said at the opening ceremony for its new SUV plant.

"Still, we believe we have the potential to earn a higher market share through our partnerships with Dongfeng and Zhengzhou Nissan. Our current objective is 10 percent." said Ghosn.

Nissan is now the top-selling Japanese automaker in China, overtaking Toyota Motor Corp, thanks to a model line-up that included small cars that met the government's tax incentives.

But it has been lagging the market's growth recently due to a shortage of production capacity, and officials have welcomed a slight slowdown in the market's sale for that reason.

Separately, Nissan-Renault has no plan to buy shares in General Motor's upcoming initial public offering, Ghosn told Reuters on the sidelines of the ceremony. -Reuters