India’s growing role in Nissan’s Power88 plan

India – and Asia – are increasingly becoming key contributors to Nissan’s six-year Power88 growth plan, which sees the Japanese manufacturer committed to an 8 percent operating profit margin by the end of fiscal year 2016 and targeting 8 percent market share.
Earlier today, Nissan Motor India launched the face-lifted Sunny at a starting price of Rs 6.99 lakh (petrol variant) and Rs 7.99 lakh (diesel). The top-of- the-line XV D diesel version is priced at Rs 9.33 lakh (all prices, ex-showroom, Delhi). Mechanically, the sedan remains unchanged and is powered by the 98bhp, 1.5-litre petrol engine and 84bhp, 1.5-litre diesel motor.
Speaking at the launch in Mumbai, Andy Palmer, chief planning officer, Nissan Motor Corporation, said: “India is a key strategic growth market for Nissan. It is the most dynamic, challenging and exciting market and we see it as a long-term home. We continue to monitor its evolution extremely closely to ensure our expanding product portfolio fits regional needs. The new Sunny is our answer that responds to the changing demands and desires."
“When first introduced in 2011, the Sunny redefined the spaciousness and value proposition in its segment in India. The aspirations of Indian sedan customers have evolved since then but we are confident that the new Sunny is now even better equipped to meet and surpass them. We expect 25 percent of Nissan-branded sales to come from the new Sunny,” said KenichiroYomura, president, Nissan India Operations.
Ajay Raghuvanshi, VP (Sales, Marketing & Dealer Development), Nissan Motor India, added, “We will make a strong effort to make the new Sunny one of the top three cars in its segment.” The company plans to expand its dealer network (which was 95 dealers in FY2011-12) to 200 by end-March 2015 and to 300 by end-2016. This augmented network, it says, will help address 98 percent of the vehicle market in India.
Nissan Motor India has reported a near-48 percent growth in its June 2014 sales of 4,362 cars (June 2013: 2,949). The Datsun Go contributed 1,097 units to this total, taking its overall Q1 FY14 sales to 6,268 units. For Nissan Motor India, Q1 FY14 numbers are 14,684 units as against Q1 FY13’s 6,268 units, a growth of 134 percent, albeit on a smaller total a year ago.

Power 88 on track

Earlier this year, on May 12, while announcing its financial results for FY2013, Carlos Ghosn, president and CEO, said: “Nissan generated solid results in fiscal year 2013 and its performance will improve further in 2014. We are taking determined steps to reach our Power 88 goals including greater focus on market-by-market execution, ramping up newly installed manufacturing capacity and strengthening our brand power," said Ghosn.
Nissan sold 5.2 million cars globally in FY2013, which translates into 6.2 percent global market share. This year, it has targeted a 6.7 percent global market share.
Nissan’s global sales forecast for FY2014 sees volumes rising by 8.9 percent to 5.65 million units, equivalent to a market share of 6.7 percent, as new plant capacity comes on-stream in markets such as Mexico and Brazil, while benefiting from full-year sales of new models including the Nissan Qashqai and Rogue, Datsun Go and Infiniti Q50.
According to Andy Palmer, sales in the AMI (Africa, Middle East and Africa) region will de-grow by 6.3 percent to around 7.9 million units. “However, we plan to improve our AMI market share by 0.7 percentage points to 4.7 percent – and India will play an important role in this plan,” he said.

Photograph:Andy Palmer, chief planning officer, Nissan Motor Corporation, at the launch of the new Sunny in Mumbai today.