Despite being among the pioneers of mass-market EVs globally with the Leaf, Japanese carmaker Nissan remains cautious about introducing electric vehicles in India. "We don't think it (the Indian market) is yet mature enough to bring EV tomorrow morning. But definitely Nissan has the technology to fulfil all the customer needs. So at the right time, we're going to do what is needed," Massimiliano Messina, Chairperson, AMIEO region, Nissan said
The company says it first wants to understand how much of India's roughly 6% EV penetration is driven by genuine customer preference versus compliance with regulations such as Corporate Average Fuel Efficiency (CAFE) norms.
"What is the real demand? So is the real demand of EV is driven by the regulation or by the customer," Nissan's Chief Performance Officer Guillaume Cartier said.
The company believes much of the current demand in the entry-level EV segment has been created to satisfy regulations and that the Indian market is still overwhelmingly an internal combustion engine (ICE) market. While Nissan says it possesses the technology to offer electric vehicles, hybrids and plug-in hybrids globally, its India roadmap prioritises SUVs, selective electrification and alternative fuels such as CNG, while keeping a close watch on how consumer preferences evolve.
For Nissan, the immediate priority is rebuilding scale in India. The company plans to expand from a single product to a four-SUV portfolio by the end of the current financial year, believing SUVs provide the fastest route to regain volumes and improve dealer profitability.
Messina said the strategy is centred on increasing its addressable market. "The first thing is we said we want to cover enough percentage of the market today and tomorrow... that's where we took the strategy of SUV... with that we believe that we are answering what India deserves," he said
The company also believes India's unique market dynamics support this approach. Unlike mature automotive markets, more than half of Indian buyers are still purchasing their first car.
"Nowhere else in the world is you have more than 50% of people that are buying a car for the first time... they buy the first time through Magnite and then they grow within the line and there is loyalty that we can have," Saurabh Vatsa, Nissan Motor India said.
The company believes India's market remains too dynamic to lock itself into one technology and wants to retain the ability to move between ICE, CNG, hybrids and EVs as customer demand evolves. "93% of the total TIV remains ICE even today. And we are focussing at bringing the volume into that 93% of the business and make sure that Nissan is catering to the consumer requirements because we keep the consumer at the centre of what we do," Vatsa added.
One of the biggest reasons behind Nissan's cautious approach, Cartier adds, was uncertainty around India's future emission regulations. "Until recently, we lacked clarity on how to comply with upcoming CAFE norms. We are quite pleased because we understand now the trajectory of the requests or the requirements by the government. And that gives clarity," he said.
Nissan says it is evaluating three possible approaches to meet future emission requirements: launching its own EV, partnering with another manufacturer or using regulatory compliance mechanisms available under the CAFE framework.
CNG: Responding to the Customer
The company admits India's rapid shift towards compressed natural gas (CNG) has exceeded expectations and views it as a more immediate customer-driven opportunity than hybrids. "The recent change in India has shown that the move has been much quicker on CNG than hybrids," Cartier said. "I am surprised this country, CNG is so predominant to a point that in some cars the equipment is eating all the space of the trunk, you don't see that anywhere else in the world," he adds.
Instead of factory-fitted systems, Nissan currently offers government-approved retrofit CNG kits for the Magnite and the BR10 engine family across 16 states through 62 dealerships. "Right now the mix of CNG is almost about 10% in our total portfolio for BR10 engines," he adds.
Its Chennai-based R&D centre also allows Nissan to respond quickly if demand for alternative fuels continues to grow.
Hybrids Remain Under Evaluation
The company says it has access to hybrid, plug-in hybrid and e-Power range-extender technologies globally. However, affordability remains the key concern. "When I look at India, I will not bet on it. Why? Because PHEV is a technology which is expensive. I'm not against hybrids but we need to evaluate," he adds.