Nissan plans to reboot India strategy in a bid to capture 4-6% market share

As part of the plan, the local arm of the Japanese carmaker, will bring new platforms and technologies, strengthen its R&D centre

Nissan Motor plans to reboot its India operations in a bid to capture 4-6 per cent market share in the country’s competitive passenger vehicles market by 2022, Peyman Kargar, chairman of India, Middle East, and Africa, said on the sidelines of the Society of Indian Automobile Manufacturers’ annual convention on Thursday. 

As part of the plan, the local arm of the Japanese carmaker, that has been a marginal player in the Indian market, will bring new platforms and technologies, strengthen its research and development (R&D) centre, and hire more people. 

“At the end of 2022, we will be at the peak of volumes by way of models that will be introduced in India. This will take us to a 4-6 per cent market share,” said Kargar. “We aren’t at the level we desire to be, in India. Therefore, we have chalked out a comprehensive plan to bring out the best of Nissan in India,” he added.

 The plan will include reinforcing Nissan as a premium brand and capitalise on its sport utility vehicle (SUV) heritage, starting with the launch of the crossover Kicks in 2019. Nissan will also harness opportunities in India from its global leadership in electrification and connected cars, he added.  Nissan has been testing its e-power vehicle in India, but Kargar said the company hasn’t fixed a timeline for launching it in India as yet. 

Meanwhile, it will pursue a differentiated positioning for its low-cost brand, Datsun, and premium brand, Nissan. “To reinforce Nissan’s premium positioning in India, we are going to leverage its global leadership in SUVs and technologies such as electrification. We will start with the launch of Kicks,” he said. For the Datsun brand, it will establish dedicated dealer outlets in tier-III and tier-IV cities. It will also be having separate team for the brand targeted at the mass market. 

Pitting it against the Maruti Alto and the Hyundai Eon, Nissan introduced the Go from the Datsun stable for the Indian market in March 2014. However, owing to a small network, poor build quality, low-frill positioning, and a tough competition from the rival brands which were superior in every way, the model didn’t find any merit among personal buyers. It now mostly sells in the cab aggregator space. 

Kargar conceded the company made the mistake of underestimating the need for a sales network for the mass segment. Nissan is looking to double its sales and service touchpoints in the next three years from 270 at present, he added. It will also bring in new models from both the Datsun and the Nissan brands.

The new strategy meanwhile will also include optimal utilisation of the plant in Chennai, which it shares with its alliance partner, Renault. It is currently operating at 40 per cent of the capacity. The plant has an annual production capacity of 480,000. Even as serving the domestic market will be a priority, Kargar said the company is looking at the plant serving the domestic requirement mainly, although exports would continue.

With a market share of less than 2 per cent, Nissan has been a low volume player in India since it entered the market. In the fiscal year that ended in March 2018, it sold 52,796 cars, against 52,796 units a year earlier.  On an average, it has been exporting 85,000 cars per annum.  

Nissan also plans to hire 1,000 people for R&D this year and another 500 for the newly set up digital hub, Kargar said, even as a plan to offer a voluntary retirement scheme is in the works for its Chennai plant.