Japanese auto giant Nissan on Wednesday announced a comprehensive four-year strategy for the Africa, Middle East and India (AMI) region under the company’s Global Transformation Plan. The AMI business plan aligns with its global policy of rationalisation, prioritisation and focus, to bring core models and technologies to a region that accounts for around 10% of the world’s automotive market. The company will build on Nissan’s existing strengths in the region, including continued growth in key markets and strong brand presence, maximising synergies with alliance partners and leveraging an expansive and competitive manufacturing presence in South Africa, Egypt, India and Nigeria, said a press statement here. AMI will leverage the new alliance global cooperation model in which all partners (Groupe Renault, Nissan Motor Corporation, and Mitsubishi Motors Corporation) will deepen synergies to support the competitiveness and profitability of member companies.
Nissan chief operating officer, Ashwani Gupta, said: “Africa, Middle East and India constitute an important region where we will target investment in existing strengths, including SUV, and bring eight new products to the market. By driving efficiencies through the Alliance and focusing on core competencies, we will further increase the region’s profitability, especially in key markets, including the Gulf, South Africa and Egypt.”
Chairman of AMI region, Guillaume Cartier, said: “The AMI region has enormous potential with some of the most dynamic and diverse automotive markets in the world. Nissan has already established a strong foundation for sustained growth with high-brand equity, a deeply embedded heritage of Nissan DNA and culture and a long history of dedicated and experienced business partners in retail and manufacturing. Through the mid-term, we will remain focused on driving value for the business by meeting the needs of our customers across the region.”
Nissan’s global transformation strategy was announced last month by chief executive officer Makoto Uchida, which aims to achieve sustainable growth, financial stability and profitability by the end of financial year 2023. In line with Nissan’s global plan, the AMI strategy is developed around two strategic areas of rationalisation and prioritisation and focus. Under rationalisation, Nissan will focus on actions to improve regional cost and efficiency, optimise the regional product portfolio by 20%, further increase the cost competitiveness of local plants, seek and enhance export opportunities from AMI plants and leverage additional opportunities to reduce fixed costs.
Under prioritisation and focus, actions will be channelled to build on key strengths in products, markets and technology, introduce eight new models, focus on core models and segments to channel investment to most profitable products, set regional priority on sports utility vehicles (SUVs) and affordable sedan models (B-sedan segment), the company press note said. The company will continue building on existing strengths in key markets, including Gulf Cooperation Council (GCC), Saudi Arabia and Egypt. It will fully realise the opportunity of Africa and Turkey as high potential markets and launch local models, including Navara in South Africa and B-SUV in India.
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