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Monday, February 25, 2013

By Pawan Rana

Nissan Datsun to produce 2 lakh cars annually from next year

Nissan seems to be too bullish on Datsun and this is the reason why the Japanese car maker aims to produce two lakh Datsun small cars annually in India. Though this is not so big a number looking at the potential in the Indian market but analysts say that being new to the market this much optimism could not be released to the full extent. Meanwhile, Nissan has decided to invest over Rs 1700 crore in India in developing a new unit to manufacture Datsun cars in the country. It is also believed that the car maker will be making India an export hub. Meanwhile, the Datsun car launch is believed to commence this year or sometime early next year at the Indian Auto Expo 2014.

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Once set up by the end of next year, the new manufacturing unit will be able to produce as many as 2 lakh cars in a year. This means that if Nissan wants to fully utilize the capacity, it needs to generate immense demand for its small cars in India as well as in the export destinations. Industry analysts believe that Datsun will have real difficulty in selling cars in that numbers as the small car market seems to have shrunken and people have gradually shifted to bigger cars instead of buying a small car. Meanwhile, if Nissan looks at the condition of Tata Nano which is the most affordably priced car in India, then it should altogether shun its plans to introduce Datsun. Though Maruti Alto 800 is a hope still it is not able to fetch so much of numbers on the sales chart.

Being a new brand will be a deterrent initially but as soon as people will find Datsun cars affordably priced as well as offering value for money they could start buying it. The price of Datsun cars could be in the range of Rs 3 lakh to Rs 4 lakh and in this price range it will be entering the most populated segment that already has so many well established offerings.

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