Combined Nissan and Infiniti sales last year reached 756,000 units, a jump of 39 percent from 2008, said Nissan (China) Investment Co. in a statement.

By contrast, Toyota sold 709,000 vehicles and Honda sold 576,000 vehicles in China in 2009, according to figures released by the two companies.

Of Nissan's 2009 China sales, 518,968 units were passenger vehicles and 231,676 units were light commercial vehicles and light trucks, according to Nissan (China) Investment Co.

With a total of 155,850 units sold last year, the Tiida compact sedan has become the best selling Nissan-branded model in China. It was followed by the Teana mid-sized car with sales of 108,504 units.

The main reason for Nissan's success is its strong portfolio of small vehicles, reckons John Zeng, who is a market analyst with HIS Global Insight in Shanghai. Sales of cars with engine displacements of 1.6 liters and below received a dramatic boost at the beginning of the year from a 50 percent cut in their purchase tax.

Running a joint venture with state-owned Chinese automaker Dongfeng Motor Co., Nissan currently builds its Bluebird, Sylphy, Geniss, Livina, Qashqai, Teana, Tiida and X-Trail models at its plant in the south China city of Guanghou. At its plant in the in central China city of Zhengzhou, meanwhile, it assembles its D22 pickup, Paladin SUV and Cabstar light truck.