Nissan India steps up its new dealership drive

Nissan Motor India has been in a dealership expansion drive for some time now. During January to March 2015, the company has signed in 15 new dealerships. The number goes up to around 35 including the multiple outlets that some of the dealerships have, says Arun Malhotra, Nissan Motor India's managing director, who is driving this expansion for the Japanese brand.

(Above: L- R) Arun Agarwal, dealer principal, Binod Nissan (Guwahati), and Arun Malhotra, MD, Nissan Motor India. North East India is now a key focus region for Nissan. 

Half (60 percent including two-wheeler dealers) of the new dealer partners also deal in other automobile brands. Malhotra cites this as a reflection of Nissan's growing acceptance in the Indian market. He says that getting someone to invest in a car dealership for the first time is relatively easier. "An existing car dealer will only invest when he has confidence in the new brand," says Malhotra.

The expansion in the dealership network is helping Nissan to ramp up its sales numbers. During 2014-15, it sold 47,474 vehicles (24 percent growth 2013-14). However, at 4,717 units sold in March, its sales saw a 33 percent year-on year drop.

Overall, Nissan says "things are positive", though there is a long way to go before any major celebration. The Datsun Go+, the newest product in its portfolio, has been witnessing growth in sales. Malhotra says the MPV has been witnessing a month-on-month growth since its launch in January this year. The positive response to the Go+ is also helping its hatchback sibling, the Go, to some extent. That perhaps explains why the majority of Nissan Motor India's sales are coming from Datsun-branded models.

For Nissan Motor India, it is still work in progress. This, and the next year, will be crucial as the company steps up its sales network expansion drive to reach the target of 300 dealers. A new entry level car will also be added by then. South and North India are contributing the major numbers for the company, while it is enjoying some good response in North East India too. Reportedly, two of Nissan’s five best performing dealerships in India are in this region which contribute four percent of the company's total sales. Not surprising then that Nissan will now take this region more seriously than earlier.

Malhotra is happy that Nissan's sales have grown on an annual basis. His focus now is building a network that is strong in both quality and  quantity.  "Network quality and quantity is like karm (action)," he says. The results, he and everyone at Nissan would hope, will be sweet.