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Nissan targets 8% global market share in 6 years

Nissan targets 8% global market share in 6 years
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First Published: Mon, Jun 27 2011. 12 20 PM IST
Updated: Mon, Jun 27 2011. 12 20 PM IST
Yokohama (Japan): Nissan Motor Co said on Monday it wants to raise its share of the global auto market to 8% within six years, promising a new vehicle once every six weeks on average to woo consumers away from its rivals.
Under its latest midterm business plan, dubbed Nissan Power 88, the Japanese automaker also pledges a rise in operating profit margin to 8% by the year ending in March 2017.
In 2010, Nissan had a global market share of 5.8% and an operating profit margin of 6.1%.
Chief executive Carlos Ghosn said last week that the next phase of growth, under the six-year road map, should deliver further market share gains and profitability as Nissan enjoys the fruits of major investments made in India and Russia, as well as in technologies such as electric cars and the low-cost “V-platform” subcompact vehicles.
“This is the first time that Nissan is starting a (business) plan on the offensive,” Ghosn told a news conference at Nissan’s headquarters in Yokohama on Monday.
Ghosn has led Nissan through four growth plans since arriving from partner Renault SA in 1999, turning the near-bankrupt company into one of the most profitable in the auto industry.
Nissan took a record share of the global car market last year with industry-beating growth most notably in China and Europe.
As part of Ghosn’s fifth midterm business plan, Nissan said it would build a factory in Brazil to produce 200,000 vehicles a year.
Ghosn wants the Renault-Nissan alliance to join the ranks of the top three automakers by sales -- Toyota Motor Corp, General Motors Co and Volkswagen AG -- to achieve the scale he believes is necessary to win as governments tighten emissions and fuel economy standards, requiring more spending on research and development.
Renault and Nissan are currently in talks to jointly take a majority stake in Russia’s top car maker, AvtoVAZ, combined with which the group ranked third last year with 7.276 million vehicles sold. Ghosn has said he expects to seal a deal by the end of the year.
Nissan Monday predicted that cumulative electric car sales by the allied makers will reach 1.5 million units by the end of its latest business plan.
Nissan last week provided rosier-than-expected guidance for sales volumes and profits, defying a setback from the disruption caused by the 11 March earthquake.
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First Published: Mon, Jun 27 2011. 12 20 PM IST
More Topics: Nissan | Auto | Carmaker | Vehicle | Japan |