Nissan currently makes two cars with Chinese company, Dongfeng Motor Group, called the Teana and Sylphy. Nissan is now aiming to merge with Dongfeng to create a Chinese-only based auto brand to be called Qi Chen.

Nissan establishing a new brand in the Chinese market will follow in the footsteps of Honda who already have such a company tied with Guangqi Honda Automobile Co. called Li Nian. The Honda unit is scheduled to introduce the China-only Everus sedan in 2011.

Meanwhile, Nissan and Qi Chen is hoping to dive into the rapidly-growing Chinese market with the new brand and showrooms by 2012, according to the Qi Chen company senior general manager, Hideki Kimata.

It’s all about feeding the demand; even Lamborghini is seeing increased sales in the market. Nissan said in a 2009 report that it sold just 10,000 cars in China ten years ago. But at the time of the report, the company recorded sales of 750,000 units, marking an obvious and quite rapid incline.

Reports say Qi Chen will introduce cheap vehicles to start off with, priced from 50,000 yuan (just under 8000 Aussie dollars). Nissan’s cheapest car currently on offer in China is the Nissan March, which is priced from 69,900 yuan (around AU$11,100).