Nissan may expand its activities in the minicar market in Japan to avoid a further drop in sales, according to the Associated Press.


The news agency reported that Nissan’s chief operating officer, Toshiyuki Shiga acknowledged that Nissan’s recent sales fall in Japan has been worse than expected and that while overall Japanese car sales are flat, sales of ‘kei’ cars, or minicars that give tax breaks, are booming.


Nissan does not currently produce any cars in this category, although it does rebrand Suzuki and and Mitsubishi-Motors-built minicars.


Shiga, who reports directly to chief executive Carlos Ghosn, said the company is still studying various options for the future, although it is unlikely to produce its own minicars as the deal with Suzuki is lucrative. It could, however, add more minicar models to its line-up.


Nissan’s sales in Japan in April were down 27% to 34,769, excluding mini-vehicles, and down 18.5% including mini-vehicles.

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