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Nissan & Fiat drive in a multi-marque credo

For these car makers, a single brand just won't do as they eye more volume sale in India

Sharmistha Mukherjee New Delhi
Last Updated : Aug 06 2013 | 9:30 PM IST
A few global car companies seem to be believe the more the merrier when it comes to their brands in India. If earlier, automobile manufacturers were seen testing the waters with just one brand or even a single make before bringing in the rest, they are now re-trying their luck with multiple brands. At a time when the Indian car market is going through one of its worst slumps, the multiple brands from the same parent will be geared to woo customers across segments and grow volumes.

Japanese automobile major Nissan which recently unveiled the compact hatch Datsun GO - the first in a line of cars under the resurrected 'Datsun' badge - is mulling bringing in its third brand, its range of premium Infiniti products to cater to the well-heeled. For the green buyer, Nissan has electric vehicles up its sleeve, albeit the introduction would hinge largely on policy of the Indian government to support the purchase and use of environment-friendly electric and hybrid cars.

The Italian car manufacturer Fiat, which had burnt its fingers with a botched distribution and aftersales strategy and sells the Punto and Linea, has scheduled no less than nine launches over the next four years.

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Apart from products under its eponymous badge, products under the marques of Chrysler Group's Jeep (with Fiat as the parent) and the premium Abarth are also going to hit the roads later this year. The light commercial vehicle range, Fiat Professional, may follow later.

Nissan unveiled the GO last month - over six months prior to its launch in early 2014 - to create awareness about Datsun in the country. The brand had been phased out in 1986. Its re-launch is part of the company's strategy to increase sales in emerging markets from 40 per cent in 2007 to 60 per cent of global volumes in 2016.

Andy Palmer, executive vice-president (global planning & programme management divisions) at Nissan says, "Nissan stands for cutting edge technology, innovation and excitement. It has a tendency to be at a price premium. This is not compatible with the goal that Datsun is fulfilling - personal mobility. With Datsun we are making a slightly different promise."

Datsun will develop its strength in the segment below Rs 4 lakh while Nissan will continue to populate the price brackets above that.

Nissan is not scrimping on a promise of premium brands either. Keno Kato, corporate vice-president (global product strategy & product planning) of Nissan says, "We are studying the market to introduce Infiniti in India. There are lots of high networth individuals seeking good quality, premium products. We have intentions to bring our luxury range to India. With the Indian government working on a framework to support use of electric vehicles, we are also considering opportunities in that segment."

Fiat's blueprint mainly has premium brands. From the Chrysler portfolio, it has SUVs such as Wrangler and Grand Cherokee under the sub-brand of Jeep up for launch to fuel volumes in a category in-demand in 2014. A premium compact car under Abarth will also burn rubber sometime later this year.

"India is the only market in the Asia-Pacific region which has only one brand from the Fiat Group. Usually, in every market we operate, we have two to three brands from our portfolio. This year we will introduce two products from the Chrysler portfolio in India and a premium product from Abarth", a senior executive at Fiat says.

Both the Wrangler and Grand Cherokee will be imported through the CBU (completely built-up unit) route.

The Abarth will be manufactured locally at the company's facility in Ranjangaon, Maharashtra.

Fiat is also expected to introduce the Jeepster and a C-segment SUV from the Chrysler portfolio in 2016. Both of these are new products being developed in Melfi, Italy. There could also be a compact SUV from Fiat in the second-half of 2014.

The Indian car market had crossed 3 million units in 2011 and is expected to be 4 million units by 2016.

Fiat, which ended its distribution tie-up with Tata Motors earlier last year, is now building its network independently to increase the reach of its products. With 100 touch-points and three more products in place by the end of 2013, the company expects to double sales in 2014, from the 11,000-12,000 units it is aiming to clock in this calendar year.

Nissan aims at growing its share to 10 per cent over three-four years, with Datsun bringing in half the volumes. It is looking at trebling its sales outlets to 300 by 2016.

India is expected to be a major production hub for Datsun. Powered by a 1.2 litre engine, the GO will have 100 per cent localisation. "To reach the price levels we are talking about, it has to be locally manufactured in India, Indonesia, Russia...we will be as close to 100 per cent indigenisation as possible. The Nissan Micra is 94 per cent localised, the Nissan Evalia 85 per cent", Palmer adds.

The Datsun GO was developed in India with inputs from technical centres in France and Japan. It will also sell in other emerging countries.

Maruti Suzuki, Hyundai, General Motors and Tata Motors control the segment below Rs 4 lakh. Car makers such as Honda, Toyota, Renault, Volkswagen, SkodaAuto and Ford play in segments above this price-point.

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First Published: Aug 06 2013 | 9:30 PM IST

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