 "Nissan plans financing booster for Datsun sales")
Ajay Raghuvanshi, vice-president, business management, Nissan Motor India, “Datsun needs a separate marketing strategy from the distribution and sales initiatives we have for Nissan. The two brands are positioned to address different sets of customers. With Datsun, we want to bring the legacy of an international brand to the first-time car buyer. To address the financing needs of such customers, we are looking at having a financial services arm.”
He declined to share specifics about the investments Nissan would make for the financial services arm but said measures would be in place before the launch of the Datsun GO hatchback in March-April. The arm would offer finance to customers for both Nissan and Datsun vehicles, Raghuvanshi said.
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Nissan is the latest among international car makers which have started their own financing arms in recent years. To boost sales of two-wheelers, demand for which remained largely stagnant for most part of the last financial year, the country’s largest motorcycle manufacturer, Hero MotoCorp, expanded the ambit of Hero FinCorp, which finances vendors, dealers and transporters, in April this year to help two-wheeler customers. Toyota, BMW and Mercedes also run thier own financing arms.
Gaurav Vangaal, analyst (light vehicle forecasting), IHS Automotive India, said: “These services allow companies to offer more innovative and flexible financial packages to consumers, other than traditional options of car loans. Offers provided by these arms attract customers to the showrooms and also increase brand recall. Today, most original equipment manufacturers have their financial services arms in India and those who do not are expected to follow soon.” Nissan unveiled GO in July to create awareness about the Datsun brand in the country. The Datsun brand was phased out by Nissan in 1986. The re-launch is part of the company’s strategy to increase sales from emerging markets to 60 per cent of its global volumes by 2016 from 40 per cent in 2007.
Nissan aims at growing market share to 10 per cent in India over three-four years from 1.1 per cent now, with Datsun aimed to bring in half the volumes. Nissan is looking at trebling sales outlets in the country to 350 by 2016. Raghuvanshi said while initially all Nissan dealers would sell Datsun vehicles, the company is working towards establishing an exclusive network for the brand. Currently, Nissan’s distribution set-up is managed by Hover Automotive. “Sales and marketing initiatives for Datsun cars would be dealt by Nissan directly,” Raghuvanshi said.
Datsun will develop its strength in the segment below Rs 4 lakh, while Nissan will continue with its plans in the more expensive segment.
Andy Palmer, executive vice-president (global planning & programme management divisions), had ealier told Business Standard, “Nissan stands for cutting-edge technology, innovation and excitement. It has a tendency to be price premium. This is not compatible with the goal of Datsun in fulfilling dreams of personal mobility. With Datsun we are making a slightly different promise.”
India is expected to be a major production hub for Datsun. The company would try to make the car completely in the country. “To reach the price levels we are talking about, it has to be locally manufactured in India, Indonesia and Russia. We are not 100 per cent local content, some parts will be passed through other countries but we will be as close to 100 per cent indigenisation levels as possible. The Micra is 94 per cent localised, the Evalia 85 per cent,” Palmer had said.
The Datsun Go, powered by a 1.2-litre engine, will be priced below Rs 4 lakh. Maruti Suzuki, Hyundai, General Motors and Tata Motors control a lion's share of the segment below Rs 4 lakh. Nissan has said it would launch multiple small cars to grow Datsun volumes to 200,000-250,000 units by 2016.