After a decade of operations, Nissan Motor, Japanese automotive behemoth is looking at changing its fortunes with perhaps some clear and a straight strategy.
Not exactly something it did in the past of rebadged and offering frugally-engineered vehicles that lost sheen to even much inferior rivals like Maruti Suzuki or Tata Motors, its new moves might be prudent after a decade of rejection and dejection.
Coming naturally from an illustrious and a storied brand that has enticed motoring aficionados around the world, Nissan is now moving towards a revamped strategy to sort out its twin-brand - Nissan & Datsun - into different spheres, to target and grab right Indian customers.
So its Chairman of Africa, Middle East & India; Peyman Kargar told the Indian media that now Nissan will target the qualitative set of customers, while Datsun the low-cost brand that made a global debut in India couple of years ago will cater to value-centric customers only.
Enumerating the broader contours of the strategy he said “We will reinforce Nissan as premium mainstream brand with wider appeal, building on Nissan’s SUV heritage and leading performance globally, starting with the Nissan Kicks compact vehicle. And focus Datsun brand on progressive mobility, with products offering high value to customers equipped with connected technologies. Keeping behind the past challenges, we aim the Indian operations best in class, and becomes a significant global hub for Nissan and the Alliance (with Renault) in manufacturing, engineering and research and development. Our strategy in India is also to invest in talent and people.”
Nissan has already roped in Deloitte to generate some new identity in the fast-evolving rural market where a new set of dealerships will emerge to cater with its high-technology vehicles as perfect answer to mobility needs of diverse hinterlands. The new dealerships are expected to come up soon and will be centred to small markets to make inroads into new virgin markets, something never attempted by second largest Japanese carmaker and will give Datsun some space in the hinterland markets. It also aims to double its sales and service touch points and strengthen dealership network in the next three years, from the current 270.
Some new models are expected to change Nissan perception in India. Most local customers are not glued to its motoring capabilities and are stuck to the older operator Suzuki which now corners more than 50% of the 3.2 million cars market. It will bring in new SUV's and some smart hatchbacks besides an array of newly developed electric vehicles with an eye on the policy initiative of the government that want to boost alternative propulsion.
Besides, its vast haunt of global products like Patrol mega SUV would eventually hit the shores as the market evolves. It has already invested. more than a billion dollars (US) and is pumping in more money to turn profitable in near future, which might not be difficult given its vast portfolio of exports. The Alliance’s plant in Chennai is a global manufacturing hub and exports to 106 countries, which is already profitable.
And it will strengthen its R&D operations with fresh talent and new tech-infusion. It will hire 500 employees in FY 2018 at Nissan’s first Global Digital Hub in Kerala, with further expansion plans that will focus on innovations in mobility to enhance Nissan’s products worldwide and in India. The move is expected to improve customer service and satisfaction, and expand access to Nissan’s products and services, through digitisation and eCommerce streams.
