Nissan reveals brand new Venucia R50

Nissan has announced the launch of the second model, the R50, from its new low-priced Chinese brand Venucia.

The compact hatchback from Venucia, which was formed by Nissan and Chinese firm Dongfeng Motor, will cost just 67,800 yuan (£6,714) and is aimed mainly at the burgeoning low-priced market outside major cities in China.

China surpassed the USA as the biggest carmarket in the world by the number of cars sold in 2009, but some major cities in the country have put restrictions in place to combat traffic and smog, leading sales growth to slow in the past few years.

Consequently, the market in smaller cities and the countryside in China has received more attention and a host of new low-priced models are being created by Japanese, US and European carmakers.

Venucia's debut model, the D50 sedan, was unveiled in April and, although sales suffered last month as a result of anti-Japanese protests, the company hopes the new R50 will be well-received.

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