Nissan hopes its revived Datsun brand will lure Russian buyers who might have bought used cars.
Launching in April, used car buyers will be attracted to its under RUB400,000 ($12,100) starting price tag, the automaker suggested.
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Nissan retired the Datsun brand in 1981 but announced last year it would relaunch the small car in emerging markets, targeting Indonesia, India, Russia and South Africa, Reuters noted.
“The main objective (in Russia) is to be a serious alternative to the used car market – this is where we want to compete,” Jerome Saigot, director of Datsun in Russia, told the news agency in Moscow.
Saigot said sales forecasts have not been disclosed but he estimates that about 6m used cars will be sold in Russia this year.
Russia has a growing middle class with disposable income, low car density and an aging fleet on the road – all factors that should support future sales – but economic growth is slowing and new car sales are expected to drop by 6% this year.
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By GlobalDataMarket analyst Autostat on Tuesday predicted a 5% decline next year, the news agency said.
Saigot, however, believes there is room for growth in lower-cost cars. The sub-RUB400,000 segment, currently accounting for about a quarter of the market for new vehicles at about 700,000 cars, is expected to grow to 900,000 cars with about the same market share by 2017.
“It is a big piece of the market where we don’t have any offer in the Nissan line-up,” Saigot said. “The risk here is to do nothing.”
Datsun will compete against Russian partner Avtovaz’s Lada but Saigot said the two brands would sell to different customers, with Datsun targeting first time buyers.
Datsun will be produced at Avtovaz’s Togliatti plant. Nissan and partner Renault have struck a deal to take control of Avtovaz by mid-2014.
Saigot said Datsun will be unveiled in April with the first deliveries planned between August and September.
