Nissan's transformation plan to focus on core markets - What about India?

TusharK · 28th May 2020, 16:22

Nissan has unveiled a 4-year plan with which it hopes to restructure its business, reduce costs and improve efficiency. The company plans to shift its focus on its core markets with the aim to achieve growth, financial stability and profitability by the end of FY2023. It also aims to achieve a 5% operating profit margin and a global market share of 6%, including proportionate contributions from its 50% equity joint venture in China.

Nissan's transformation plan to focus on core markets - What about India?-nissanlogo20121920x1080.png

Nissan plans to adjust its production capacity by 20% to 5.4 million units per year. It is aiming to achieve more than 80% plant utilization. The carmaker also plans to reduce its global product line-up by 20% from 69 to 55 models. Fixed costs will be reduced by approximately 300 billion yen.

The company's manufacturing units in Indonesia and Barcelona, Spain will be shut down, while the North American production will focus on core models. Nissan's transformation plan also includes prioritizing the markets of Japan, China and North America. The brand will exit the South Korean market and will shut down the Datsun brand in Russia. Alliance partners will maintain its business in South America, ASEAN and Europe.

Nissan plans to introduce 12 new models in the next 18 months. The carmaker is looking to launch electric vehicles (EV) and e-Power models. Two electric cars and four e-Power models are expected to be launched in Japan. The ProPILOT driver assistance system is expected to be introduced in 20 models in 20 markets. More than 1.5 million units will be equipped with this system per year by the end of FY23.

Link to Team-BHP News

dragracer567 · 28th May 2020, 16:40

There seems to be no mention of the European market where the Qashqai and Juke are some of the favorites. Also, no mention of the Indian market either where they are supposed to launch a compact SUV. It just seems like they just don't want to leave these two markets while playing second-fiddle to Renault (like GM). Even in the North American market, their latest products aren't exactly class-leading like they used to be with the Altima and Sentra being barely as good as stunning Hyundais and Kias let alone the Toyota Camry and Honda Accord.

ajmat · 28th May 2020, 21:30

Quote:

Originally Posted by dragracer567

There seems to be no mention of the European market where the Qashqai and Juke are some of the favorites. Also, no mention of the Indian market either where they are supposed to launch a compact SUV. It just seems like they just don't want to leave these two markets while playing second-fiddle to Renault (like GM). Even in the North American market, their latest products aren't exactly class-leading like they used to be with the Altima and Sentra being barely as good as stunning Hyundais and Kias let alone the Toyota Camry and Honda Accord.

From what I hear, Nissan's plant in UK will be the SUV centre, all Qashqai's, Jukes, and perhaps the Kadjar and Captur will be produced there. I guess this is under wraps untill Brexit is negotiated.

raystriker · 28th May 2020, 22:25

A small preview of what's to come:
(Including the next Z car!)

https://www.youtube.com/watch?v=aiqOLRJi7nU

Edit: The rear looks like it's taking heavy inspiration from the 240Z, nice!

GTO · 29th May 2020, 09:21

Nissan is in a lot of trouble, even in huge markets like the USA which contribute to a big chuck of their profits. Their relationship with Renault is also damaged, and there is a serious leadership issue at the top.

Now with Covid-19 leading to an inevitable global recession, Nissan HQ will be forced to focus on its core businesses. India is NOT one of them. In fact, India is a money loser for brand Nissan (not for Renault). I think their upcoming compact crossover is the final shot. If it doesn't succeed, Nissan will pack up from India - link to my analysis on the matter (Nissan India Deathwatch - Will Nissan exit India?). Nissan will follow others in reducing or eliminating commitment to India (others being Chevrolet, Ford, VW etc.).

28th May 2020, 16:22	#1
TusharK Senior - BHPian Join Date: Jul 2017 Location: Pune Posts: 6,387 Thanked: 56,750 Times	Nissan's transformation plan to focus on core markets - What about India? Nissan has unveiled a 4-year plan with which it hopes to restructure its business, reduce costs and improve efficiency. The company plans to shift its focus on its core markets with the aim to achieve growth, financial stability and profitability by the end of FY2023. It also aims to achieve a 5% operating profit margin and a global market share of 6%, including proportionate contributions from its 50% equity joint venture in China. Nissan plans to adjust its production capacity by 20% to 5.4 million units per year. It is aiming to achieve more than 80% plant utilization. The carmaker also plans to reduce its global product line-up by 20% from 69 to 55 models. Fixed costs will be reduced by approximately 300 billion yen. The company's manufacturing units in Indonesia and Barcelona, Spain will be shut down, while the North American production will focus on core models. Nissan's transformation plan also includes prioritizing the markets of Japan, China and North America. The brand will exit the South Korean market and will shut down the Datsun brand in Russia. Alliance partners will maintain its business in South America, ASEAN and Europe. Nissan plans to introduce 12 new models in the next 18 months. The carmaker is looking to launch electric vehicles (EV) and e-Power models. Two electric cars and four e-Power models are expected to be launched in Japan. The ProPILOT driver assistance system is expected to be introduced in 20 models in 20 markets. More than 1.5 million units will be equipped with this system per year by the end of FY23. Link to Team-BHP News Last edited by TusharK : 28th May 2020 at 16:32.
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28th May 2020, 16:40	#2
dragracer567 BHPian Join Date: Aug 2019 Location: Bahrain Posts: 938 Thanked: 5,002 Times	re: Nissan's transformation plan to focus on core markets - What about India? There seems to be no mention of the European market where the Qashqai and Juke are some of the favorites. Also, no mention of the Indian market either where they are supposed to launch a compact SUV. It just seems like they just don't want to leave these two markets while playing second-fiddle to Renault (like GM). Even in the North American market, their latest products aren't exactly class-leading like they used to be with the Altima and Sentra being barely as good as stunning Hyundais and Kias let alone the Toyota Camry and Honda Accord.
	(4) Thanks

29th May 2020, 09:21	#5
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,794 Thanked: 303,378 Times View My Garage	Re: Nissan's transformation plan to focus on core markets - What about India? Nissan is in a lot of trouble, even in huge markets like the USA which contribute to a big chuck of their profits. Their relationship with Renault is also damaged, and there is a serious leadership issue at the top. Now with Covid-19 leading to an inevitable global recession, Nissan HQ will be forced to focus on its core businesses. India is NOT one of them. In fact, India is a money loser for brand Nissan (not for Renault). I think their upcoming compact crossover is the final shot. If it doesn't succeed, Nissan will pack up from India - link to my analysis on the matter (Nissan India Deathwatch - Will Nissan exit India?). Nissan will follow others in reducing or eliminating commitment to India (others being Chevrolet, Ford, VW etc.).
	(1) Thanks