INDIA: Nissan eyes 5% share by 2012
Nissan has drawn up an aggressive plan for India which will see a business model comprising five locally made cars and four imported models.
By 2012, the company has targeted a modest 5% share of the emerging market which is estimated to be close to 1.5m units at that time, the Hindhu Business Line reported.
New versions of the Teana sedan and X-trail SUV will arrive in India next month and Nissan will introduce the 370Z sports car, its third imported model, early in 2010.
The company, whose manufacturing plant is being commissioned near Chennai in March 2010 with a capacity of 200,000 units, has reiterated that there is no change in its plan.
"Our commitment to the Tamil Nadu Government is that we (including alliance partner Renault) will invest INR45bn in seven years and will increase capacity to 400,000 units within this period. That is basically our fundamental plan," Nissan Motor India managing director and CEO Kiminobu Tokuyama told Business Line.
"The first India-made Nissan car will roll out of the V platform on which the Micra is produced. We will launch the car by the end of June 2010," he said. The idea is to produce a hatchback version, followed by a sedan in 2011 and a third model which is right now at the planning stage.
"We will produce two more models in India. The company is now studying which could be suitable for the Indian market though the goal is to have a mid-range product in India," Tokuyama added.
The report said Nissan is proceeding well with hiring and supplier development for the Chennai project. It has already recruited 500 people at manager and group leader levels in manufacturing. This will rise to 1,500 by April 2010 and double to 3,000 by 2012.
The company is "already engaged in contract" with 94 suppliers and has a self-imposed target of 80-90% 'localisation'. Twenty of the 94 vendors will set up in the adjacent supplier park.
On Renault's decision to freeze investments for the moment, Tokuyama said the two companies had decided to use common platforms for their India operations. "They can use these platforms whenever they are ready," he added.
As for the ultra-low-cost car project being planned with Renault, Nissan and Bajaj Auto, he said, "Renault and Nissan are working to optimise the product and the plan. The team is working on product definition and the details."
He added that he was not involved in the project which "is being led by Renault from our side".