 "Vincent Cobee")
Datsun, the two-year-old brand from Japanese car maker Nissan, now contributes to half the company’s volumes in India. Overall, Nissan’s sales have been under pressure for months, even as the market continues to expand. After unveiling Datsun’s third product, the Redi GO, Vincent Cobee, global head of Datsun at Nissan headquarters, tells Ajay Modi the company will focus on improving presence and profitability.
What segment of the Indian car market interests Datsun?
It is dynamic. Datsun is made to address the mobility needs of the emerging middle class. When we began in 2013, we launched a compact hatchback. You will see us expanding in a structured way, to meet the evolving tastes of Indian customers. Then, we came up with GO Plus, a larger and more spacious car, and now the Redi GO for younger India. You can expect crossovers and SUVs. We are not so convinced about sedans.
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We are present in the Rs 3.5-4.7 lakh range. The Redi GO will start around Rs 2.5 lakh. The Indian customer is price-sensitive but also conscious of the value proposition. We realise there is a high level of analysis and involvement in purchase. People opt for higher specifications at even lower price points.
You see Datsun’s acceptability as a challenge in the Indian market, where older players continue to dominate?
This is an amazing anomaly. You have a very fast growing market, where the dominant player grows share. There is something particular about the decision making process of buyers here. It is influenced by word of mouth from friends and family. I don’t expect the dominance to continue. Acceptability is not our problem. My challenge is presence and awareness. We have taken lot of efforts to improve on these fronts. We are improving proximity by opening dealerships and focusing on improving the service network and better communication through different ways.
What will be the company’s India-specific strategy?
India is one of the most focused growth markets for Nissan. For Datsun, it is very close to being our birthplace. This should become our largest market. India has an extremely demanding customer, a very capable engineering base and very capable supplier base. Put that together and we want India to become our centre of excellence. If you can be competitive in India, you can be competitive in Africa, the Gulf, Asean and maybe even in Latin America.
The taxi segment uses a lot of your cars. Is it the way you want to be positioned?
Well, that is the cab hailing segment. We have a very productive and win-win collaboration with Ola. We see Ola as one of the great examples of Indian capabilities and innovation. This company is beating Uber in the Indian market. We were honoured when they approached us for a deal. We believe we can offer durable and competitive vehicles for them. It offers us a good way to be visible and demonstrate our capabilities. We see this as one of the numerous facets of the Datsun presence in India.
Is ensuring profitability of dealers a challenge, as volumes are low?
We have a very close and continuous discussion with dealers. They are our face to the customers. Dealer revenue is made on new cars and service. When most cars are new, you do not make money on service. We need to go over that period. The starting period is always a challenge for a new brand in India. We will continuously launch products and bring our dealers to the right level of profitability.
Is making money in the Indian market possible as cars are being launched at aggressive prices?
The dominant player in India makes more money here than anywhere else in the world. So, it is possible. We need to understand that profitability is the result of a job well done. It is not the starting point. We have competitive offerings. If our products are seen as reliable by customers and volume goes up, we will make money.
