Nissan eyes domestic LCV segment

After its investment commitment on the passenger car front, Japanese auto major Nissan is eyeing an entry into the domestic light commercial vehicle (LCV) market.

Speaking to Business Standard, Giuseppe Cavallo, global manager, communications, LCV business unit, Nissan Motor Co, said, "India is a potential market for LCV products. We are evaluating various options (of entering the Indian market)." Cavallo refused to divulge further details on the probable time of entry, products or investment.

According to industry sources, Nissan is finalising a plan for India, which could see the company investing to the tune of Rs 2,000 crore. A good chunk of the amount is expected to be invested for an LCV assembly or manufacturing unit, said sources.

"If Nissan is looking for big volumes, they will have to set up a manufacturing base in the country, which could be best formed by tying up with a well-established LCV player in the country, like Tata Motors or an Eicher," said industry sources.

The other option would be to assemble the trucks in the country or import them from a country, like Thailand, to avail of FTA benefits.

Last year, more than 5 lakh LCVs were sold in the country (in the below-five tonne range) and their sales are growing at a rate of more than 10 per cent. The major players in the segment are Tata Motors, Mahindra & Mahindra, Bajaj and Piaggio.

Globally, Nissan has sold more than 4 lakh LCVs. Nissan began its India operations in 2005 by setting up Nissan Motor India for importing and selling the company's passenger vehicles in the country.

It recently entered into an understanding with Suzuki, by which the latter, through its subsidiary Maruti, will manufacture cars for Nissan in the country. In return, Nissan will make cars for Suzuki for some other markets.