卖空TM?

he diplomatic row between Japan and China is "worrying," says the CEO of Nissan Motors Carlos Ghosn, in response to recent reports that the dispute may be hurting sales at Japan's second biggest automaker.

Last week, Nissan's Chief Operating Officer Toshiyuki Shiga was quoted in the media saying Japanese car manufacturers in the southwestern Chinese city of Chengdu were having difficulty in holding big, outdoor sales promotion campaigns due to the row over disputed islands in the East China Sea, which may have hurt August sales.

"Look, it's a worrying situation," Ghosn told CNBC on the sidelines of the World Economic Forum in Tianjin, China. "Anything which is taking place between two countries - which have everything, which can complement each other and work together - could become a threat in distorting the relationship."

"Hopefully, wisdom will come and try to resolve the issues and this will be under control. But, you never know," he said, adding that Nissan is doing all it can to "lobby" for resolution.

Those concerns aside, Ghosn maintains that China is a key "growth" area for the company, expecting sales in the country, which contributes nearly a quarter of its global sales, to grow 6 percent in 2012.

"All our projections are showing that for the next five years, it's going to continue at this rate, between 5-6 percent. 5-6 percent for the market, which is above 18 million, you're talking about additional million cars every year," Ghosn said, shrugging off concerns that sales are starting to level out in the mainland.

In a bid to capture the lower end of the market and target buyers in smaller cities, Nissan unveiled over the weekend the second model from its new low-priced Chinese brand Venucia, which will sell for as little as 67,800 yuan ($10,760).

Venucia was created by Nissan and its Chinese joint venture partner, Dongfeng Motor, and is a key feature in Nissan's global strategy announced last year to focus on selling to fast-growing developing countries and reducing reliance on the U.S. market.

Ghosn refuted concerns that lower prices will equate to lower profits.

"I don't think a cheaper car means less profit or something that car manufacturers have to avoid because it's a drag on their profitability," he said. "In terms of margins, if you do your job well, you can make as much money on the cheaper car and lower cost as you do at the higher end."

Europe Is Biggest Worry

While Chinese and U.S. markets are chugging along, Europe remains the biggest worry for the firm, Ghosn said.

"Our worry, the worry of most companies, is Europe," Ghosn told CNBC Asia's "Cash Flow" on Tuesday, adding that car sales were up 6 percent globally in the first seven months of the year, while sales in Europe fell 7 percent.

"We are seeing growth everywhere in the world, except Europe. So our main concern is Europe."