Nissan 2007 Annual Report Download - page 31

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manufacturers in the Chinese market to invest in
offering new products here, and in the sales
networks and services and so on. Many
manufacturers are developing new services for
customers. If we don’t do the same, our sales
volumes and customer support will shrink.
In fiscal 2007 we have a target of 300,000 units
for Nissan-branded vehicles, which is 50 percent
more than last year. In terms of our passenger
vehicle business, since we plan to introduce more
new products, we’ll be expanding production capacity
at the Guangzhou plant from 270,000 to 360,000
vehicles by 2008. We will also be expanding our
dealer network from the current 300-plus outlets to
four hundred. Over 70 percent of our dealers were
profitable in 2006, and many earn enough on
services to pay virtually all fixed dealership fees. Our
expansion efforts are now focused on establishing
mid-sized dealers in each province.
Our first-quarter results for LCVs show we
increased sales volume by 30 percent, even though
the TIV is only growing by around 10 percent, and we
are trying to improve our sales performance by using
Dongfeng-badged LCV products. We have plans to
bring in a Nissan-branded LCV product for customers
who would like even better quality and performance.
We have no plans to export passenger vehicles
we make, because China is the only market with a
20 percent sales volume increase and more than
four million units. Our Dongfeng-badged commercial
vehicle operation, however, is exporting trucks to
emerging countries such as Pakistan, Africa and
Afghanistan, and to the Middle East. We exported
more than 10,000 units in 2006, and we’re aiming
for 12,000 units in 2007.
This April at the Shanghai Motor Show we
introduced the new Livina. This is a very strategic
vehicle for Dongfeng Nissan because it is priced
between 80,000 and 100,000 yuan, a range
affordable to first-time customers who would
ordinarily buy Chinese makes. The Livina is Nissan-
branded, has Nissan quality and almost the same
interior space as the Tiida. It should appeal to first-
time buyers, especially ones with families. We already
have 4,000 orders in hand one month after its debut,
which is 50 percent more than our expectations. We
hope to use this new vehicle to generate even
greater sales volume.
Nissan Annual Report 2006-2007 29
Tiida Sylphy Auto Shanghai 2007 (April, 2007)
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