Nissan developing small car to take on Maruti’s Alto
Nissan developing small car to take on Maruti’s Alto
New Delhi: Nissan Motor India Pvt. Ltd is working on developing a small car that will cost less than its current entry-level model Micra and will compete with Maruti Suzuki India Ltd’s largest-selling Alto hatchback.
Nissan entered the competitive compact car segment with the Micra, which sells for about ₹ 4 lakh, in July 2009. Two and half years since its introduction, even as the car has found acceptability in overseas markets, the model has yet to gain traction in India.
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Micra has found favour mostly among women or those in their early 20s. Though Nissan has no qualms about this as women and youngsters are the “trend setters", another small car in the portfolio will help in increasing the overall volumes, Nakamura said.
In the months from April to November, Nissan sold 133,533 units of the Micra, compared with 176,628 units a year earlier.
In the first eight months of the current fiscal, car sales contracted 3.5% to 1.22 million units, according to the Society of Indian Automobile Manufacturers.
“The car can’t merely address only a particular segment, it has to appeal to a larger group. You have to change the direction with the design," Nakamura said.
Andy Palmer, executive vice-president, global planning and programme management divisions at Nissan Motor Co. Ltd, said the company aims to increase its market share in India to 8% by 2016 from less than 2% now.
Encouraged by the fast-expanding multi-purpose vehicle market, Nissan unveiled Evalia, a seven-seater model that will compete with the Toyota Innova, which leads the segment with a 28% market share. Aimed at so-called business entrepreneurs and families, Nissan will start selling the model by the middle of 2012. The MPV has been selling in the US and Europe, among other markets, unlike the Innova, which has been selling primarily in Asia.
Evalia, engineered for Indian conditions, will sport a 3.5 litre diesel engine and be produced at Nissan’s Oragadam facility in Chennai.
To reach its market share target, the company plans to double its dealerships in India to 100 by 2013, Palmer said.
Though Micra is Nissan’s entry-level model in most markets, in India the strategy will be different as cars priced below ₹ 4 lakh account for 45% of the total market.
Nissan is exploring several options to develop small cars for the Indian market. One among them, Palmer said, could be to seek assistance from Defiance Technologies Ltd, a Hinduja group firm that offers engineering services to several automotive and non-automotive firms.
V. Sumantran, executive vice-chairman of Hinduja Group, said while his firm is willing to help in terms of engineering and design, it will not get into manufacturing and production of passenger cars.
Ashok Leyland Ltd, Hinduja group’s flagship company, has a joint venture with Nissan Motor for producing light commercial vehicles for the Indian market. This will address both the passenger and goods carrier segment.
shally.s@livemint.com
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