UPDATE 1-Nissan sees 2008 China sales up 11% to 500,000 cars

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TOKYO, Feb 25 (Reuters) - Nissan Motor Co (7201.T), Japan's third-biggest automaker, said on Monday it expects sales in China to rise 11 percent this year to 500,000 vehicles, fuelled by the planned launch of three new passenger cars.

Nissan expects sales of passenger cars to rise by one-fifth from last year to about 360,000, while sales of light commercial vehicles, mostly through its local partner Dongfeng, are seen totalling 140,000.

Nissan, held 44 percent by France's Renault SA (RENA.PA), has a 50-50 joint venture with Dongfeng Motor Group (0489.HK) to produce and sell passenger cars and commercial vehicles in China. It sold about 450,000 cars and light commercial vehicles in 2007.

"We expect our passenger car sales to grow faster than the industry's, so we're looking to boost our market share," Takashi Nishibayashi, general manager of Nissan's China operation support office, told reporters.

He estimated Nissan's share of China's passenger car market at slightly more than 5 percent last year.

Among the new product launches will be the Qashqai sport utility vehicle, which was developed for the European market but has proven to be a hit also in Japan. The car, a cross between a hatchback and an SUV, is called Dualis in Japan and will be sold as the Xiaoke in China starting next month.

Nissan expects China's overall vehicle market, including trucks and buses, to approach 10 million units this year, up from roughly 8.8 million in 2007.

To help it grow in the fast-growing but cut-throat Chinese market, Nissan also said it would open a new training centre at its local Huadu factory at a cost of $3 million.

The training ground, geared towards sales staff and mechanics, is Nissan's second-biggest after a facility in Japan, Nishibayashi said.

The company hopes to lift the number of Nissan sales outlets by 100 to about 470 this year and the number of dealerships for its high-end Infiniti brand to 15 from six.

Nissan rolled out the Infiniti line in China last July with the G35 sedan and FX35/45 SUV and added the M35 sedan last month. (Reporting by Chang-Ran Kim; Editing by Eric Burroughs)