volumes in April-November FY14 have declined 18.4% at 21,562 units, though sales in the past few months have improved since the recent launch of the ‘Terrano’ compact SUV.
Incidentally, Nissan is also planning a captive finance arm like Volkswagen, Mercedes-Benz and BMW. Registered as an NBFC, the group financing company from Nissan, Datsun and Renault, will launch attractive finance schemes and help push sales. “Reach and availability of finance is critical in the small car segment. Our captive finance arm is under evaluation. It will be a group finance arm,” Raghuvanshi said.
Nissan, which sells its own branded products through marketing partner Hover Automotive in India, has decided to instead handle the marketing and sales departments for Datsun directly. Initially Nissan dealers (145 planned by March, from 117 today) will sell both Datsun and Nissan cars, while Datsun will also build exclusive dealers in new regions.
“We are targeting 5% of the rural market share initially. It is an important market at a time when sales in urban areas are hit. Overall, 65% of sales should come from tier II and III cities,” Raghuvanshi said.