Nissan to Increase Domestic Sales in India
Published By : 28 May 2015 | Published By : QYRESEARCH
Nissan Motor Co is looking out to increase its market share in India. The Japanese automotive manufacturer is focusing on increasing domestic sales in the country and reach parity in domestic sales and exports from the country within a span of five years. According to the president of Nissan India, Guillaume Sicard, the auto company aims to get at least 5% share in the Indian market.
Presently, Nissan’s production in India is export-orientated. In financial year 2014-15, the car manufacturer exported around 65% of its vehicles manufactured in India and could just sell 35% of its manufactured units in the Indian market. The company’s focus is to make this ratio equal. In 2013-14, 70% of its automotive units manufactured in India were exported. The car manufacturer is looking forward to sell 250,000 units per year in India and 5.5 million units per year by 2020. Currently, it holds a mere 1.8% share in the Indian automotive market which is dominated by Hyundai and Maruti Suzuki.
According to Sicard, India has emerged as a challenging market for the company due to the low transaction prices. Nissan has recently launched Datsun Go, an entry-level car which is getting modest response in the market. Sicard pointed out that the company needs to have mass production in the country to achieve low manufacturing cost. In terms of exports, the company was ranked as the third largest auto exporter in 2014-15. This financial year, Nissan saw a sales growth of 25% over the last year’s numbers and its exports rose by 3%. The company has invested Rs 4,500 crore in India so far and is expected to invest further to achieve increased domestic sales.