Nissan is investing 167 million euros to double capacity at its plant in St. Petersburg, Russia, to 100,000 units, as it seeks to triple its sales in the fast-growing market by 2016.
Nissan will use the extra capacity to begin production of its popular Qashqai crossover and to complement its existing output of the Teana sedan, X-Trail SUV and Murano crossover.
Nissan hopes to raise its Russia market share from 5.9 percent to 10.0 percent and triple its annual sales there to 161,000 units by 2016.
"Nissan already has a very strong local presence and, today, we are the largest Japanese carmaker in Russia and one of the largest overseas brands, but we want to triple sales and double market share over the next four years," Nissan Executive Vice President Colin Dodge said in a statement.
Nissan said it is also "exploring further opportunities" with the joint venture between the Renault-Nissan alliance and Russian Technologies Corp., but was not more specific.
Earlier this month, Nissan and French alliance partner Renault said they would form a joint venture with Russian Technologies Corp. to become the largest shareholder in AvtoVAZ, Russia's biggest automaker. Renault and Nissan will together invest about $750 million to take a majority holding in the joint venture, which will in turn own 74.5 percent of AvtoVAZ.
The investment will include about $300 million from Renault and the remainder from Nissan. Renault already purchased 25 percent of AvtoVAZ for $1 billion in 2008. The companies aim to complete the deal by mid-2014.
Nissan also reiterated that it plans to use the AvtoVAZ plant in Togliatti, Russia, to launch its Datsun-brand cars in the country.
Nissan said Datsun-badged cars could represent up to a third of its total sales in Russia by 2016.
By 2016, Nissan said local production will represent up to 80 percent of its cars sold in Russia.