Nissan India has not been shut down, despite rumors to the contrary, according to a senior corporate official who also confirmed that the company is heavily invested in India. Nine years after the firm began the Datsun brand’s global relaunch in India, rumors were rampant when the company decided to end the Datsun brand there.
Srivastava emphasized that the firm has a significant investment in India, saying that the Nissan NEXT Magnite is the first vehicle to be introduced in India in 2020 and is providing highly aspirational value. With 50,000 production roll-outs, it surpassed the milestone of one lakh plus client bookings in March 2022.
He emphasized that there are presently more than 18,000 pending client bookings for its well-liked small SUV, with a waiting time of 5 to 6 months.
Despite Magnite’s respectable demand, it is well known that the corporation is in danger in India. In India, it has had a miserable almost two-decade-long journey, both in terms of market share and footprint expansion. Nissan India, which only has one production facility in Chennai, now has a market share of less than 1%.
With aggressive efforts to maximize output in the face of obstacles from semiconductor shortages and Covid-19, Srivastava added, “We are servicing the client demand in the local and 15 export markets through our manufacturing unit in Chennai.
When senior Congress leaders asserted that Nissan themselves had ceased operations in the Indian market, the discontinuance of Datsun became a political issue. Mallikarjun Kharge, a former minister of the Union and the opposition leader in the Rajya Sabha, tweeted on Monday that Nissan has joined Ford, General Motors, Fiat, United Motors, Premier Automobiles, and Harley Davidson in ceasing operations in India.
These automakers have all left India one after the other, citing the “sleaze of business” and declining revenues. No one has ever embarrassed India abroad and failed the Indian economy like the BJP, he continued.
Prior to this, former MP Udit Raj tweeted on Sunday that “Indian operations of Japanese automaker Nissan will be closed. Multinational corporations are leaving India one by one. Also Read:
In This Article...
Nissan’s shutdown has a cause.
Since August 16 due to a lack of semiconductors, output at the Smyrna complex, the hub of Nissan production in North America, has been reduced. As automakers get ready for the yearly model switchover and the industry’s autumn production surge, the issue is still very much in the foreground.
Nissan attributes the shortages on the closure of semiconductor manufacturing facilities in Malaysia, where production has been halted as a result of COVID-19’s spread.
The Japanese automaker’s sizable North American production facility is located in the central Tennessee city of Smyrna, which is about 30 miles east of Nashville. The Nissan Rogue, Pathfinder, Murano, Leaf, Maxima, and the brand-new Infiniti QX60 are all built at this plant.
Nissan is it leaving India?
Nissan India MD Rakesh Srivastava has formally denied rumors that the company intends to leave the Indian market.
As part of a bigger global transformation strategy, Nissan India, according to Srivastava, is concentrating on its core models and market sectors. The Nissan NEXT program’s first vehicle to be introduced is the Magnite.
In December 2020, Nissan Magnite was introduced. One lakh reservations have been made, and 50,000 units will be produced through March 2022. The chief executive of Nissan India also disclosed that there is a waiting list of 5–6 months for more over 18,000 client orders for the Magnite.
Nissan announced the discontinuation of the Datsun brand in India earlier this month. A member of parliament tweeted in reaction, “Indian operations of Japanese automaker Nissan are to be closed.” This had fueled rumors that the business was leaving the market.
Nissan still produces automobiles?
Nissan Motor Co., Ltd. (Japanese:, Hepburn: Nissan Jidsha kabushiki gaisha) [a] is a Japanese multinational vehicle manufacturer with its headquarters in Nishi-ku, Yokohama, Japan. It trades as Nissan Motor Corporation and is frequently abbreviated as Nissan. Nissan, Infiniti, and Datsun are the brands under which the firm distributes its cars. Nismo is the name given to its own line of performance tuning goods, which also includes automobiles. The Nissan zaibatsu, today known as Nissan Group, is the organization’s first predecessor.
Since 1999, Nissan has collaborated with Mitsubishi Motors of Japan and Renault of France as a member of the RenaultNissanMitsubishi Alliance (Mitsubishi joined in 2016). Nissan has a 15% non-voting share in Renault as of 2013, while Renault has a voting interest of 43.4% in Nissan. Nissan has owned a 34% controlling interest in Mitsubishi Motors since October 2016. [8]
Nissan ranked after Toyota, General Motors, Volkswagen Group, Hyundai Motor Group, and Ford as the world’s sixth-largest carmaker in 2013.
[9] The RenaultNissan Alliance was the fourth-largest automaker in the world when taken as a whole. [Reference needed] The most popular Japanese brand in China, Russia, and Mexico was Nissan. [10]
Nissan sold more than 320,000 all-electric vehicles globally as of April 2018, making it the top EV manufacturer in the world.
[12] The Nissan LEAF, which ranks as the second-best-selling electric car globally, just behind the Tesla Model 3, is the most popular model in the automaker’s entirely electric lineup. [13]
Nissan’s failure in India: Why?
Nissan has experienced many difficulties throughout its history in India. Even its best-selling vehicles, like as the Sunny and Micra, would behind their rivals in terms of sales. Even with the Teana and the X-Trail, they attempted to get into the luxury sector but only sold a small number of vehicles. The Nissan Evalia was another such vehicle. We’ll examine the Nissan Evalia’s failure in the Indian market today.
Lack of Requirement
The Nissan Evalia’s failure was attributed in part to the glaring lack of demand for MPVs. People simply didn’t need many MPVs at the time this car was for sale. The Innova or the Ertiga would be chosen by people who required them. Furthermore, despite extensive promotion, many were unaware of the market and simply used the Innova as a comparison. Even though the Evalia was a superb VFM MPV, the market simply wasn’t ready for it.
Poor Design
This argument very much speaks for itself. Simply said, the Evalia didn’t look nice at all. Despite the fact that it was incredibly comfy, packed with functions, and reasonably priced, the appearance turned many people away. The Maruti Ertiga and the Innova, competitors to the Evalia, looked far better and attracted more attention than it did. One of the main causes of the Nissan Evalia’s failure in the Indian market is this.
Lack of Engine and Transmission Options
The absence of alternatives was another factor in the Nissan Evalia’s failure on the Indian market. It only had a manual transmission and one diesel engine. When the competition provided a variety of engines and transmission choices, this was insufficient. Although it worked effectively for the taxi industry, the Evalia had little response there as well.
The Nissan Evalia’s failure in the Indian market was caused by the following factors. The next book you want to read is what? Tell us in the comments section below!
Honda Motors: Does it leave India?
Some of Honda Cars India’s models, notably the fourth-generation Honda City, may shortly stop being produced. The Jazz and WR-V are the other Honda models that will be dropped from Honda India’s lineup. Even though the business hasn’t made an official statement about it, the incident has been reported by a number of outlets in the auto industry.
After October 2022, Honda India will reportedly stop producing the Jazz, according to sources. After March 2023, Honda WR-V manufacture will come to an end. After December 2022, the Honda City, one of the company’s most well-known vehicles, will no longer be produced. The company will continue to provide the Honda City of the fifth generation, which was just released on the Indian market.
The manufacturer will only have three models to offer in the India market, namely the City (5th generation), Amaze, and Hybrid City, if the reports about the discontinuation of the City (4th Gen), Jazz, and WR-V prove to be accurate. All three models are sedans by coincidence. This implies that the corporation will exclusively sell sedans to customers. It is anticipated that the departure of Honda’s three flagship vehicle models (City 4th Gen, Jazz, and WR-V) will leave a gap in the Honda India lineup.
According to numerous online sources, Honda is anticipated to launch a midsize SUV in the Indian market. The launch has also been verified by Honda. In India, the mid-sized SUV is anticipated to debut in 2023. In addition to diesel and gasoline versions, there is a chance that the forthcoming SUV may also be available in a hybrid configuration.
It is anticipated that Honda City’s underpinnings will be used in the company’s upcoming compact SUV. We can anticipate a 1.5-liter gasoline and diesel engine, which is already available in the City. But if Honda does decide to release a hybrid version of the SUV, it will use the Honda City hybrid’s hybrid drivetrain.
Is there a chip shortage at Nissan?
For automakers, these difficulties have led to some significant setbacks, and Nissan is no exception. The company’s production has decreased for the past four years as a result of the global shortage of semiconductor chips, according to a recent Reuters story. The business experienced an 11% decline from the year before in the most recent year.
When he said, “Semiconductor shortage is a new normal, same as pandemic, and we have to live with it since this is not going to finish tomorrow morning,” Nissan’s Chief Operating Officer admitted this hard truth.
Since of this reality, automakers like Nissan have had to continuously revise their planning and forecasts because even the most carefully thought-out strategy can be overturned by unforeseen supply chain interruptions.
How is Nissan affected by the chip shortage?
Uchida stated during the earnings briefing that although the Japanese automaker supports alliance member Renault’s (RENA.PA) decision to separate its electric vehicle (EV) division, more discussion is required to see whether such a decision would benefit their relationship.
In an effort to catch up to competitors like Tesla (TSLA.O) and Volkswagen (VOWG p.DE), the French automaker stated in April that all alternatives, including a potential public listing, were on the table for the separation of its EV business. View More
However, the action has sparked rumors that Renault would think about decreasing its Nissan investment. View More
The structure of their cooperation, which involves Renault owning 43.4% of Nissan and giving Nissan a 15% non-voting stake in the French corporation, has long caused resentment in Japan.
The two-decade-old alliance between the automakers, which also includes Mitsubishi Motors (7211.T), was upended in 2018 when alliance founder Carlos Ghosn was fired amid a financial scandal. Since then, they have vowed to pool more funds and collaborate more closely to produce electric vehicles. View More
Nissan turned a 19 billion yen deficit in the fourth quarter of 2017 into an operating profit of 56 billion yen in the most recent quarter, supported by cost-cutting measures and a weaker currency.
The outcome exceeded the 38.3 billion yen profit expected on average from the eight analysts surveyed by Refinitiv.
Nissan previously claimed that the global shortage of semiconductors was to blame for its global production declining for a fourth straight fiscal year, with the most recent decrease being an 11% year-over-year decrease.
Prior to the report, Nissan’s shares closed up 1%, outperforming a 1.8% decline in the overall market.
Satoshi Sugiyama reported; Kevin Krolicki and David Dolan contributed additional coverage. Editing by Barbara Lewis, Mark Potter, Jane Merriman, and Christopher Cushing
Is there a future for Nissan in India?
In India, three new Nissan vehicles—the Sunny 2023, X-Trail, and Leaf—will be introduced between 2022 and 2024. These 3 new vehicles include 2 sedans, 2 SUVs, and 2 hatchbacks. In the upcoming three months, there won’t be any new cars from the list above. Likewise, learn.