Nissan has set high aims in the Indian car market. The Japanese automaker hopes to achieve a 10 % market share by the end of this decade. This target means that Nissan will have to really up the game in terms of volumes. The automaker currently holds just 2.2 % in terms of market share in India, and this number includes Brand Datsun, which will be a key player in Nissan’s 10 % market share plans. Datsun has two more big volume products lined up next year, in the form of the Go+ MPV and the DediGo entry level hatchback. These products are expected to give Nissan a big boost in the next couple of years as they will be positioned in the entry-level car space, a segment that dominates sales.
Nissan’s Chief Planning Officer Mr. Andy Palmer has admitted that the Datsun Go’s performance in India has been underwhelming, with average monthly sales of about 2,000 units. The stumbling block for Datsun, according to Mr. Palmer, is the minimal reach that Nissan has in India, in terms of dealerships. The automaker has already begun setting up exclusive Datsun dealerships and by the end of this year, Nissan and Datsun combined will have 200 dealerships. By 2016, this number will go up to 300, giving both Nissan and Datsun badged cars a better chance at success.
While Nissan India has been a slow mover domestically, the automaker is going great guns on the exports front. In fact, Nissan continues to be a car maker whose export volumes are many times more than the volumes sold domestically. The exports division of Nissan is absorbing the poor domestic performance but the Japanese automaker isn’t willing to live with status quo. The taking over of marketing and distribution functions by snapping ties with Hover Automotive and the big push in terms of dealership addition reveal Nissan’s intentions for India.