Nissan 2006 Annual Report Download - page 29

Download and view the complete annual report

Please find page 29 of the 2006 Nissan annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 102

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102

X-TRAIL at Auto Expo Aquest Auto Pvt. Ltd in Mumbai Nissan Motor India employees
We established our
corporation in India just
a year ago, and currently
sell one model, the
X-TRAIL. People in India
know about Nissan as
a global company and
about Mr. Ghosn, but they
don’t really know we’re
selling cars in India yet.
Nissan is committed to the
Indian market, however, and we see a lot of
potential here.
The total industry volume in India exceeded one
million units in 2004 and 2005. The compounded
annual market growth rate for the last decade was
11 percent. This figure is supported by a really good
economy and stable government policy. India’s GDP
growth rate averages 7 or 8 percent annually, and
the government expects that to continue for at least
three or four years. By 2010, we believe the total
industry volume will exceed two million units.
By introducing the X-TRAIL, which is both a
luxury vehicle and a leisure vehicle, we’re building a
brand image of high quality and technological
superiority. We are targeting wealthy families, who
typically buy the X-TRAIL for a combination of
leisure and everyday use. The X-TRAIL is often the
fourth or fifth car a family purchases.
Because the X-TRAIL is a completely built unit,
or CBU, we have to pay 111 percent duty. The duty
on “completely knocked down” or CKD models,
which are assembled in country, is only 38 to 48
percent depending on engine displacement. The
price positioning is therefore totally different. We had
five dealers at the end of last year, and together they
sold 160 units in fiscal 2005.
One advantage is that we sell a diesel version
here, which our competitors do not. That’s important
in the Indian market; everyone is keying on fuel
consumption, and diesels are very popular because
the fuel price is so competitive.
Of course we’re not satisfied with selling just
one model. We want to enter higher-volume
segments, meaning the more moderately priced A,
B, C and D segments. Geographical expansion is
one of the breakthrough activities under the Nissan
Value-Up plan, and although China is the top
priority, I believe India comes next. We recently
announced our business collaboration with Suzuki,
including sharing manufacturing facilities, starting at
Suzuki’s plant here.
During the year since our corporation was
established, we have grasped the in-depth realities
of India’s market and have factored them into our
future strategies. We’re now completing a feasibility
study on how to fully enter this market, and will
finalize our plans very soon. Nissan has the
resources to proceed very quickly after that.
Nissan Annual Report 2005 27
INDIA
Entering a New Market at a High Level
YOSHIE MOTOHIRO
Managing Director
Nissan Motor India
Pvt. Limited
GEOGRAPHIC EXPANSION
PERFORMANCE