Tuesday 12 June 2012

Nissan picks Hinduja firm for low-cost play

Nissan seems to have finally found a local partner for developing its Indian low-cost car. The Japanese carmaker has roped in Ashok Leyland’s associate company Defiance Technologies for the design and development of its under-Rs 4 lakh Datsun brand of cars for the Indian market.

Nissan has been toying with the idea of a low-cost car for India for the past few years and was scouting for a local partner. As its existing global car platforms couldn’t be re-engineered to produce entry-level cars in India, Nissan had recently announced its plans to revive its heritage brand Datsun and develop low-cost cars under the banner.

“We are working with Ashok Ley­land’s engi­nee­ring services firm — Defiance. It’s a contract, not a collaboration,” Andy Palmer, executive VP at Nissan Motor, Japan, told Financial Chronicle in an exclusive interaction.

In Datsun, Nissan is not looking to develop a global car. But it is aiming at very a specific customer segment and is expected to be positioned in the category of Maruti’s Alto and Hyundai’s Eon.

Datsun will be a brand designed, developed and sold in India while conforming to Nissan’s global standards.

Defiance Technologies has been mandated to design, develop and identify suppliers for the Datsun brand, which is likely to be the game-changer for Nissan in the Indian passenger car market. Defiance will work with Nissan’s R&D in this new car development project.

“We decided to develop a car for India using Indian engineers, suppliers and manufacturer to suit the Indian taste. We wanted a car incorporating Japanese quality and durability, but tailored to Indian costs and customer needs. Datsun will exemplify all of that and it will be a low-cost reliable brand of Nissan for Indian customers,” he stated.

“Defiance allows us to triangulate the Indian car customer needs and also makes sure that we get access to Indian suppliers more effectively. Car firms use engineering services firm for such developments. We will use Defiance and their engineering capabilities in this project,” he added.

“There is a full range of potential customers in India in the sub-Rs 4 lakh price range. The brand will be positioned to woo customers in the entry level segment, he could be a motorcycle user or a Nano owner car or a first time buyer,” he said adding, the brand would also be positioned as a prelude to winning and acquiring the customers for Nissan’s brands up to Infiniti.

Datsun brand of cars are expected to hit the market by 2014. At present, Nissan sells compact car Micra and mid-size sedan Sunny, both built on its global V-platform, besides luxury sedan Tiana, luxury SUV X-Trail and sports car 370z. The company is also gearing up to launch its multi utility vehicle Evalia this year. Nissan’s Micra and Sunny are produced at the vehicle-cum-engine factory of Renault-Nissan near Chennai that has an annual production capacity of four lakh cars at present.

1 comment:

  1. It will be surely a good deal for both of the companies.As both have a good track record .I have some news about GM for car lovers of India.
    General Motors India is planning to launch Chevrolet Captiva few months.Very nice and impressive SUV,Chevrolet Captiva looks very fabulous and stylish.It's sizzling performance with mind blowing mileage and power make it a new avatar of excellence.

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