Nissan steps up the pace for Indian ops

Japanese carmaker Nissan recently launched new versions of its Teana saloon and X-Trail SUV models and plans to bring in seven more models by 2012, five of which would be made locally. This includes its new small car, the Micra which is being launched in May 2010.

Despite the global slowdown, Nissan plans to keep its investment plans for India on track and will make its Chennai plant a global production hub for its small cars. This plant is part of Nissan’s seven-year, $920 million investment plan undertaken with partner Renault, which owns 44 percent of Nissan. The company says it plans to start exporting 110,000 cars a year from Chennai to Europe, the Middle East and Africa from the second half of 2010.

It also plans to source parts like pistons, clutches and starter motors from India worth $20 million in 2010, going up to $40 million by 2012 for its plants in China, Japan and Thailand. According to Kiminobu Tokuyama, CEO and MD, Nissan Motor India, “Globally Nissan plans to invest $3.6 billion during 2009 and the single largest investment is in its Indian operations.”

The new Teana is based on the company’s D platform and is powered by its 2.5-litre 6-cylinder VQ engine mated to its new Xtronic CVT which comes with Adaptive Shift Control (ASC). The X-Trail features Nissan’s latest electronically controlled four-wheel-drive system. Dubbed the ‘All Mode 4x4i’, the new system aids stability by instantly analysing information received from a steering angle sensor, a yaw rate sensor and a lateral accelerometer to estimate the driver’s cornering path and control front and rear torque split for smooth cornering on slippery roads. The new X-Trail also features Hill Descent Control and Hill Start Assist and is powered by a newly developed 2.0-litre diesel engine, with a six-speed manual transmission. It is priced from Rs 20.81 lakh for the base version going upto Rs 25.08 lakh for the top-end SLX version. The Teana costs Rs 21.03 lakh for the base 2.5XL version increasing to Rs 25.40 lakh for the 2.5 XV variant.


Growing dealer base Nissan has tied up with Hover Automotive India to market and sell its cars and plans to have 55 dealers by 2012, from the current network of five dealers. Since Nissan began selling cars in India in 2004, it has sold just 1,000 X-Trails and a mere 300 Teanas. It is also going slow on its JV with Ashok Leyland which would manufacture light commercial vehicles and is considering whether to use existing facilities rather than building a new plant.

The company is also planning to launch its iconic 370Z sports car in India in December this year priced around Rs 40 lakh in a bid to bolster its image in the country prior to the launch of its small car. If demand is good, Nissan may even homologate the car here, allowing it to import low- spec manual cars at a much more affordable price.