The Tata Nano has become a hot commodity in India where its sub-$3,000 price tag puts it in reach of millions of people. Now Nissan plans to launch its own Nano-fighter to gain market share in developing markets.
With the help of its partner Bajaj Auto Ltd., Nissan is hoping to not only build a competitively low-cost vehicle for consumers, but the automaker is also expecting healthy profitability on such a vehicle. Combining local partnerships with low-cost manufacturing techniques, Nissan’s new car “will contribute to our growth in terms of volume and profitability,” says Gilles Normand, Nissan’s corporate vice president in charge of Africa, the Middle East and India.
Nissan expects to launch its Nano competitor in India by 2012, where about half of all four-wheeled models on the market are priced under $8,000. But Nissan is not merely intent on undercutting the Nano’s low base price since most buyers reportedly opt for the top of the line trim which runs about $4,183.
Nissan will soon begin manufacturing the all-new Micra in India next month at its first Indian plant. By buying parts locally, Nissan will strengthen its relationship with local suppliers, while helping to cut costs and maximize margins.
* * *
Continue reading the latest Nissan news right here on this blog.
