Having created a lighter operational structure in India after divesting stake in its Chennai manufacturing JV in favour of French alliance partner Renault, Japanese carmaker Nissan is now preparing for a “product offensive” in the country as the company moves ahead to strengthen its line-up and retail presence to build credible market share in one of the world’s fastest-growing economies.
Nissan – which has a minuscule 0.5 per cent share in the 4.7-million-strong Indian passenger vehicle market – wants to not just grow its volumes in the country but also use it as a credible sourcing base for exports.
“We see India as very, very important for Nissan. However, we also recognise that it’s not an easy market to crack, and can be extremely difficult,” Guillaume Cartier, Chief Performance Officer at Nissan Motor Corporation, told Times Internet.
Heavy investments planned for new models
The company has long been operating in India with just one model, the Magnite entry SUV, that severely limited its play and kept it confined to the margins. Cartier now says that the situation is set to change as it works on new models to grow the engagement with customers, while even considering some of its blockbuster global models such as the Patrol.
“Our ambition is to stay and develop in India. If I was not committed, we would’ve exited. But that will not happen as we have plans to expand, both with models and new investments,” he said. “The investments that we are doing are in several hundred millions (dollars) with the new models.”
After Gravite, Tekton Premium SUV to come in soon
After launching the 7-seater Gravite (based on the Renault Kiger) in India at an aggressive entry price of Rs 5.65 lakh (ex-showroom), the company is now preparing for an ambitious entry into the highly-competitive (and volume laden) premium SUV category with the Tekton. The Tekton is a twin of Renault’s new launch, Duster, and apart from its French sibling, the car will compete with heavyweights such as Hyundai Creta, Kia Seltos, and Tata Sierra.
Cartier said that even while Nissan had sold its stake in the Chennai factory to Renault, the company still has an agreement under which it has a reservation for as many as 2.5 lakh units annually from the production. “It is a win-win for both the companies, and also helps drive in economies of scale. The agreement is till 2029, and we have an option to renew it further.”
Global blockbuster patrol coming soon; hybrids, range extenders planned
Thierry Sabbagh, Divisional VP and president for Nissan’s Middle East, Saudi Arabia, Commonwealth of Independent States, and India, said that the company can consider importing some of its iconic cars such as the Patrol. “It’s a flagship car focus. The Patrol does extremely well in the Middle East. We are definitely looking at expanding the Patrol to other markets. India is definitely one of them. We are talking to our partners.”
Massimiliano Messina, Chairperson for Nissan’s Africa, Middle East, India, Europe and Oceania (AMIEO) regions, said the company will re-assess its market share in India after it launches the new cars. Also, he said that exports will boost the overall positioning of India in Nissan’s global operations. “We want to get more products to India. We want to be more competitive domestically, while building exports.”
Messina said that Nissan will be looking at introducing its range extender technology as well as hybrids as part of its electrification strategy in India. “If our technology can qualify for benefits under carbon credits, it would be good. The govt should look into this. Remember that creating infra for EVs will take a huge cost. Range extenders and hybrids are much more of a fit.”
