GUANGZHOU, CHINA (Reuters) - Japan's Nissan Motor aims to boost its China sales 20 percent next year, but added it could run into problems due to capacity issues, one of its top China executives said on Monday.

The company said it expects to sell more than 500,000 vehicles in China this year, well above its previous target of 380,000, as auto sales have soared in the country due to a range of incentives introduced by Beijing to boost the sector.

The company is aiming to boost its sales next year to 600,000, but could face issues because its current capacity is just 500,000 vehicles per year, said Yasuaki Hashimoto, president of Nissan (China) Investment Co Ltd.

"It's a kind of challenge for next year," he told Reuters in an interview, adding that it will cope with the challenge by adding extra shifts and other ad hoc measures.

He said the company is currently building a plant in the south China city of Guangzhou, which will add 240,000 units of new annual capacity when it comes on line in as soon as two years.