Mumbai: Japanese carmakers Nissan and Toyota have started exporting midsized cars made in India, spearheading a strategic change that seeks to make the most of the country's cost advantage and growing technical prowess.
In the next 12-18 months, Nissan plans to export 50,000 units of India-made sedan Sunny to the West, executives familiar with the matter said, adding that rival Toyota will ship Etios cars, made at its Indian unit, to South Africa.
Volkswagen, Ford and Renault are expected to join them soon. Experts say exports not only help in dealing with the slowdown in the domestic market, but also act as a hedge against costlier imports, which have turned dearer by 25-30% in recent months.
French carmaker Renault plans to export to the UK about 25,000 units of its sports utility vehicle Duster over 12-18 months. The shipments may start in October.
Similarly, Germany's Volkswagen is keen on producing left-hand drive Vento sedans in India for markets in the West. Volkswagen, which exports India-made Vento cars to South Africa and Malaysia, has mandated vendors to develop components for a left-hand drive version of the sedan.
The carmaker plans to export 8,000-10,000 such units by 2013, said an executive, who did not wish to be named.
"Our export of the Vento to South Africa confirms that we are able to produce high-quality cars in India at competitive costs," Volkswagen India's spokesperson said, adding, "This also shows our potential to further extend our exports to other markets. We are looking at various opportunities in the future, also in left-hand drive markets."
The Volkswagen spokesperson, however, declined comment on target markets and numbers.
Ford Motor, too, is likely to export its yet-to-be launched EcoSport SUV from India, according to people familiar with the company's plans.
Executives dealing with the projects of multinational carmakers say that over 100,000 sedans and SUVs manufactured in India are slated for export over the next 12 months. The depreciating rupee, which ended at a record low on Friday, is only likely to accelerate such plans.
Experts say the growth in exports, which comes at a time the global economy is slowing down, could accelerate once the economy picks up. There are not many right-hand drive manufacturing bases that are as cost competitive as India, said Kumar Kandaswami, director at Deloitte.
"The cost of engineering, both at the carmaker's end and supplier's level is very competitive, which gives India an edge. Manufacturers use exports as not only an opportunity to mitigate risk arising out of volatile currency, but even to balance the demand in the domestic market," said Kandaswami.
Toyota Kirloskar, the Indian subsidiary of the Japanese carmaker, has already received orders to export 20,000 units of the Etios sedan to South Africa. The company's deputy MD, marketing, Sandeep Singh, told ET the exports will help cut losses on account of the falling rupee.
Ford, too, is firming up plans to export its EcoSport SUV from India to South Africa next year.
Success in my Habit
Showing posts with label Nissan. Show all posts
Showing posts with label Nissan. Show all posts
Monday, June 25, 2012
Friday, March 23, 2012
Nissan works on low-cost cars for Indian market
Mumbai: In a bid to aggressively compete against the top three Indian car makers, Maruti Suzuki, Tata Motors and Hyundai, Nissan is working on a slew of small car projects to be introduced in India under a new brand Datsun, starting 2014.
These low-cost cars from Datsun will fight for space in the price bracket of Rs 2-4 lakh, where the country’s highest selling model, Maruti Suzuki Alto, currently sells. Hyundai’s entry level car, Eon, and Tata Motors' Indica also sell in the space.
Nissan says the company is on course to launch two such models in 2014, and will progressively look at adding products at similar price points later. Datsun products will utilise Nissan and Renault's installed capacity at Chennai.
Nissan, the second largest automotive brand in Japan, is the second such company in India after Volkswagen to have refrained from entering into the low-cost segment using its own brand. Nissan-badged vehicles will sell above the Rs 4 lakh price tag in India.
Besides India, the Japanese company is looking to share the Datsun brand, which was progressively discontinued 25 years back, in emerging markets like Indonesia and Russia. Matured markets like the US, Japan and western European markets are not chosen for launching the Datsun brand.
Products under Datsun will have their unique platforms, besides their own vehicle technology. These products will be market specific, with limited or no scope for exports. Though Nissan officials did not provide details about Datsun's product plans, market reports say that one of the two products could be the one which is under development with a subsidiary of Ashok Leyland.
Ashwani Gupta, programme director, Datsun Business Unit, said, "The Datsun brand will be catering to the affordable segment with modern technology and generous features. These models will be developed locally and have a high local content and engineering.”
Targeting first-time buyers, Datsun's products will be aimed at buyers of used car or motorcycle. Hover Automotive, which handles sales, service and distribution of Nissan-branded cars in India, will also sell the Datsun brand. Thus, both brands will be sold under the same roof. Nissan is targeting about half of its sales to emerge under the Datsun brand. Product line-up and investment details will be disclosed at a later date, informed a Nissan official.
Carlos Ghosn, chief executive, Nissan Motor Company, said, "It's not going to be a global brand with global products; it’s going to be a global brand with very specific products adapted to market needs. We want to bring something much more modern."
Introduced in Japan in 1931, the Datsun brand established a strong foothold for the Japanese car maker in the all-important US market, beginning in the 1960s. But the nameplate was completely discontinued by 1986 globally in favour of the Nissan brand.
With the entry of Datsun, Nissan's entry level car will be Micra (priced at Rs 4.21 lakh, ex-showroom, Delhi). Among other models, Nissan also sells Sunny, Teana, Xtrail and the 370Z in India.
These low-cost cars from Datsun will fight for space in the price bracket of Rs 2-4 lakh, where the country’s highest selling model, Maruti Suzuki Alto, currently sells. Hyundai’s entry level car, Eon, and Tata Motors' Indica also sell in the space.
Nissan says the company is on course to launch two such models in 2014, and will progressively look at adding products at similar price points later. Datsun products will utilise Nissan and Renault's installed capacity at Chennai.
Nissan, the second largest automotive brand in Japan, is the second such company in India after Volkswagen to have refrained from entering into the low-cost segment using its own brand. Nissan-badged vehicles will sell above the Rs 4 lakh price tag in India.
Besides India, the Japanese company is looking to share the Datsun brand, which was progressively discontinued 25 years back, in emerging markets like Indonesia and Russia. Matured markets like the US, Japan and western European markets are not chosen for launching the Datsun brand.
Products under Datsun will have their unique platforms, besides their own vehicle technology. These products will be market specific, with limited or no scope for exports. Though Nissan officials did not provide details about Datsun's product plans, market reports say that one of the two products could be the one which is under development with a subsidiary of Ashok Leyland.
Ashwani Gupta, programme director, Datsun Business Unit, said, "The Datsun brand will be catering to the affordable segment with modern technology and generous features. These models will be developed locally and have a high local content and engineering.”
Targeting first-time buyers, Datsun's products will be aimed at buyers of used car or motorcycle. Hover Automotive, which handles sales, service and distribution of Nissan-branded cars in India, will also sell the Datsun brand. Thus, both brands will be sold under the same roof. Nissan is targeting about half of its sales to emerge under the Datsun brand. Product line-up and investment details will be disclosed at a later date, informed a Nissan official.
Carlos Ghosn, chief executive, Nissan Motor Company, said, "It's not going to be a global brand with global products; it’s going to be a global brand with very specific products adapted to market needs. We want to bring something much more modern."
Introduced in Japan in 1931, the Datsun brand established a strong foothold for the Japanese car maker in the all-important US market, beginning in the 1960s. But the nameplate was completely discontinued by 1986 globally in favour of the Nissan brand.
With the entry of Datsun, Nissan's entry level car will be Micra (priced at Rs 4.21 lakh, ex-showroom, Delhi). Among other models, Nissan also sells Sunny, Teana, Xtrail and the 370Z in India.
Wednesday, March 16, 2011
Toyota, Nissan reopen plants in Japan
NEW DELHI: In early signs of recovery for the Japanese auto industry, Toyota , Nissan and Mitsubishi have decided to reopen some plants. However, full-fledged production is still some time off.
The fate of a large number of component vendors as well as power supply shortages are the biggest concerns for Japanese auto companies like Toyota, Honda, Suzuki and Nissan. This is also an irritant for their Indian subsidiaries, which depend in varying degrees on the parent for crucial component and technology support.
Toyota, which closed down all plants in Japan after the March 11 quake, decided to reopen seven plants in Aichi prefecture from Thursday, a spokesman said in Tokyo. However, it will keep 21 plants shut until March 22. On the other hand, Nissan and an affiliate would reopen one plant on Thursday and another on March 18. Two factories, however, will remain closed until March 20, while another will operate partially. No decision has been made on reopening a sixth plant.
Mitsubishi also resumed production at its three plants in central and western Japan. These will continue running through Thursday, though no decision has been made about continuing output thereafter. But the plants of auto giants like Honda and Suzuki are still closed. Honda and Mazda said plants will be closed until March 20. Suzuki, the parent of Maruti, also said that all Japanese factories will be shut until March 21.
The fate of a large number of component vendors as well as power supply shortages are the biggest concerns for Japanese auto companies like Toyota, Honda, Suzuki and Nissan. This is also an irritant for their Indian subsidiaries, which depend in varying degrees on the parent for crucial component and technology support.
Toyota, which closed down all plants in Japan after the March 11 quake, decided to reopen seven plants in Aichi prefecture from Thursday, a spokesman said in Tokyo. However, it will keep 21 plants shut until March 22. On the other hand, Nissan and an affiliate would reopen one plant on Thursday and another on March 18. Two factories, however, will remain closed until March 20, while another will operate partially. No decision has been made on reopening a sixth plant.
Mitsubishi also resumed production at its three plants in central and western Japan. These will continue running through Thursday, though no decision has been made about continuing output thereafter. But the plants of auto giants like Honda and Suzuki are still closed. Honda and Mazda said plants will be closed until March 20. Suzuki, the parent of Maruti, also said that all Japanese factories will be shut until March 21.
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