Japanese car maker Nissan Motor Company has outlined a global strategy for the period till 2016, which will see it strengthen its brand power and grab an 8% global market share with an 8% operating profit. The strategy has been dubbed ?Power 88? by the company and emerging markets like India will play a key role in helping Nissan meet these targets. The push for growth has started with the revival of the Datsun brand as an affordable car for first time buyers in India. Kiminobu Tokuyama, Nissan Motor India?s outgoing managing director and chief executive officer, details the company’s plans for India to FE?s Debabrata Das.
What will be Nissan Motor Company?s strategy in India over the next five years. How important is India for the company?
India is an important part of Nissan’s ‘Power 88’ strategy. ‘Power 88’ is a strong and effective mid-term growth strategy, which is based on six pillars. One of the significant achievements of our strategy for high growth markets has been the successful introduction of the V-platform sedan. In India, since the launch of V-platform under the name of Sunny in September, we have already sold over 10,000 units and there is a waiting period due to the huge demand.
How much has the company achieved so far after rolling out this strategy here?
Significant achievements during the current year in high-growth markets have been the ramping up of the dealership network and the high sales growth. Another big achievement of our ?high growth market strategy? has been the successful production capacity enhancements in each of these markets. In India, we added significant capacity by starting a second line of operation this month, taking our production capacity up to 4 lakh units per annum.
Where do you see Nissan’s sales in India growing during the Power 88 strategy period?
While, globally, we sold 4,750,000 units and grew by 13% this year, we have grown 30% by selling 1,584,000 units in five high-growth markets and added 26% more outlets. In India, our sales have grown by 188% during the FY 2011-12 and we have also doubled our sales outlet to 60. We expect to continue with this momentum and grow in all the segments where we are present.
How does Nissan plan to operate the Datsun brand in India?
We are pursuing a local-based proposition for specific customer values of the up-and-coming women and men in the fast-growing countries such as India, with the return of the new Datsun brand.
Our target customers are very active with many priorities in life and to pursue the best optimum choices in life; they are critical of having excess values which they do not need or want.
What are going to be the key market segments in India for Nissan Motor Company?
We have been present in hatchback for the last two years, in the entry-level sedan segment for the last six months and we will be present in the utility vehicle segment by September this year.
We will mark our presence in the price entry segment with the entry of Datsun. Nissan globally owns Nissan and Infiniti brands, and, with Datsun, we will have a three-brand line-up. Nissan and Datsun will be our focus in India.
Will local R&D in India only focus on the Datsun brand?
No. We will continue local research and development for products under the Nissan brand also.