JAPAN-based Mazda Motor Corp is expected to further strengthen its sales operation in China, the world's second-largest auto market, by establishing a new subsidiary in Beijing.

Mazda said the Beijing branch, established on November 1, will play a role in coordinating the sales and marketing of Mazda models in China.

The auto maker has set a target of selling 300,000 units in China by 2010.

The car maker formed a new sales company in April this year to handle the Mazda 3 sedan and upcoming Mazda 2 compact cars manufactured by Chang'an Ford Mazda Automobile Co Ltd. The sales company is scheduled to open in January. Mazda also partnered with First Automotive Works Group to make the higher-end Mazda 6 sedan.