Terrano is for SUV buyers but on the premium side: Kenichiro Yomura

Interview with President of Nissan's India operations

Nissan India unveiled a five-seater sports utility vehicle (SUV), Terrano, today. It would be launched in October, just before the festive season. The Terrano which has several similarities with its sibling Renault Duster (they share the platform and components) is the last of the products on a common platform. This is the seventh product from Nissan and its first SUV in India. Kenichiro Yomura, president of Nissan India Operations spoke to Swaraj Baggonkar on the sidelines of the launch. Edited excerpts:

How much time did it take to develop the Terrano?

Usually it takes more than two years to develop such a model. The platform was (already) there, we had to develop the product.

When are you launching the Terrano?

It will be launched in the first half of October. Before the festive season. The starting price will be below Rs 10 lakh.

The Renault Duster is also below Rs 10 lakh. Would it not end up competing with the Duster?

Yes it will. If you are talking about competition, then everybody is a competitor, and not only SUVs but sedans too. In our policy, we have to look at each individual customer's needs, requirement and expectations, and try to satisfy and meet those expectations. That is what I have asked the staff to work on in not only the product but in the service as well. So, this particular model, the Nissan Terrano, will be looking at the SUV segment, but it will be more of the premium side of customer needs.

Would Terrano, then, be priced higher than the Duster (Rs 7.15 lakh, ex-showroom, Mumbai)?

Yes, it will be priced higher than the Duster because it is positioned as a premium product. We need to work hard on the numbers. The SUV is an aspirational product for the younger and affluent customer. The Terrano has a good chance in the segment as there are not too many products in this segment.

The Renault Pulse and Scala and the Nissan Micra and Sunny ate into each other's market shares. Does it make sense to launch shared-platform vehicles under the two brands?

The Renault-Nissan alliance was formed more than 12 years ago. From the beginning, we were determined to share the platform. With a common platform, we can lower the cost of production and be able to offer the product at a competitive price.

So, it is a matter of the degree of differentiation.

The compact SUV segment is gaining ground. Would Nissan consider it?

We think about all the opportunities to develop models that make sense, but currently our focus is the Terrano.

What is the sales target for the end of the year?

We talked about 100,000 sales at the beginning of the year, which has not changed as of now. But with the market changing, we don't know. Exports would be another 100,000 units. It is a challenge for us.