Nissan looking to triple sales in India this fiscal

Nissan Motors India, a subsidiary of Japan’s Nissan Motor Co, is looking to almost triple its sales in the domestic market to about 1 lakh vehicles in FY14 against the 37,000-units sold during the previous financial year.

“We have new models coming in, and we are going to increase the number of dealers,” said Kenichiro Yomura, President of Nissan’s India operations. “We need to improve our marketing communications,” he added.

During the year, the company will launch four models — two refresher models and two new models — of which one will be from its Datsun brand. The first launch could be as early as July, said Yomura. He, who is also the Managing Director and CEO of Nissan Motors India Pvt Ltd (NMIPL), added that the company will increase its dealer network to 145 by the end of this fiscal. As of March 31, 2013, the automaker’s dealer network stood at 95.

The plan is part of the company’s ambitious target of garnering 10 per cent of the domestic passenger vehicles market by the turn of FY17.

Currently, NMIPL sells six models in India. It manufactures the hatchback Micra, the sedan Sunny and the MPV Evalia at its Chennai plant, which has an installed capacity of 4 lakh units a year. It imports the other three models — the premium sedan Tenea, the high-end SUV X-Trail and the luxury sedan 370Z.

NMIPL, which exported about 1.30 lakh vehicles in FY13, expects to maintain that number during the current fiscal as well.

Nissan, Japan's third largest automaker, will also look at investments in improving its production capacity in India, from the existing 4 lakh units of installed capacity.

On the relationship with Hover Automotive, which has been handling the key functions of sales, after-sales service and marketing, he said the company would continue to work with it. However, he ruled out picking up a stake in Hover.

On the impact of the global recall of Micra following some brake glitches, Yomura said the company has so far received only nine complaints. It had sold 35,000 Micras in the domestic market.

India, Japan to ink pact on the lines of Malabar naval exercises

India will elevate the Japan security relationship to a new level. During Prime Minister Manmohan Singh's visit to Tokyo on May 27, India and Japan are likely to work out a set of annual bilateral exercises between the two navies off the coast of India on the lines of the Malabar exercises with the US. Japan will reciprocate with another rare gesture: the Japanese emperor and empress, who rarely step out, will make their first-ever visit to India at the end of the year.

In addition, India will be buying the first two amphibious aircraft from Japan — the maiden military hardware being sold to India. This would be the first export of US-2 — manufactured by ShinMaywa Industries, Ltd — and usually regarded as being without peer in the world as a search-and-rescue aircraft. Japan has changed its laws to accommodate the sale of the seaplane to India, which New Delhi sees as a major gesture. The aircraft will be converted as a "civilian" rather than a "military" plane to get around a Japanese export ban on military systems. Israel will install the avionics for Indian use, and the aircraft is believed to be the only one than can operate on rough seas.

While the PM will be staying in Japan for an extra day, it is also likely that his Japanese counterpart, Shinzo Abe, will pay a return visit to India before the end of this year. Singh was supposed to be in Tokyo last November, but with the then Japanese PM Noda dissolving Parliament on that day, he was forced to postpone his visit to May. But Abe may keep to his own timetable, and visit India this year.

After the Chinese Premier Li Keqiang's visit, Singh is expected to visit China later this year as well. But having two summit visits with Japan has a special significance. The Indian establishment — having been jolted by China's misadventure in eastern Ladakh recently — appears more than ready to bump up its ties with Tokyo.

Scholarship for study in Japan

Embassy of Japan, New Delhi has invited applications for award of scholarship from interested students who want to peruse different courses viz undergraduate programme; college of technology; specialized training college (Senshu-gakko); Japanese studies; young leaders' programme and teachers training in Japan for the academic session 2014 .

Details can be had from the office of the Japan Information Center, THAU Ground, Thangmeiband during office hour (9AM- 11AM and 1PM-4PM), Th Shyamchandra Jabeth, Coordinator of Japan Information Center, Manipur informed in a release.

Nissan Safety Driving Forum Asks India to Use Seat Belt

Nissan India that launched the 'Nissan Safety Driving Forum' in February to spread awareness of road safety and benefits of safety technologies in cars, has recently organized a campaign in Chennai Asking people to belt up. Around 100 million vehicles today ply Indian roads, however an alarming number of road accidents makes India a place with the worst accident rate globally, with an average of 17 live per hour lost to road accidents in 2011. According to a WHO report, road safety in India is worst worldwide, where many people don't use seat belts while driving their car. And the same WHO report further says that seat-belts reduce the risk of a Fatal injury by up to 50% for front seat occupants, and up to 75% for rear seat occupants.



So with an objective to aware India the benefits of using, Nissan organized this program. "India probably has one of the lowest rates of people belting up," said Sivam Sabesan, part of Technology Planning at Nissan India. "Correspondingly, we also have the highest fraction of fatalities to accident ratio, which I think is something that needs to be looked at." The Nissan Safety Driving Forum kicked off in Delhi, Mumbai and Chennai this year, aiming for more Indian drivers and passengers to belt up. A rollover and low-speed crash simulator specially built by a team in India and Japan allowed visitors to experience how seat belts worked.



"The whole part of building the simulators was really tough, being the first time here in India," said Prasad Ponnuswamy, a senior engineer in the team. "But the moment you see the customers absolutely delighted and saying that 'I will wear the seatbelt,' you feel mission accomplished." The three events attracted 26,000 visitors over six days, and Nissan plans to expand the program to five more cities this year including Kolkata and Bangalore.



"This experience is actually a slow one – the car was rolling slowly. What happens if it rolls faster? That's very dangerous," said one driver after trying the rollover simulator. "Normally when my father tells me to wear my seat belt, I wore it but never understood the significance of it. Now I understand the importance of it." Nissan hopes the program will contribute to minimizing road fatalities in India and ensure drivers walk away with the right message: "Safety begins with me!"
 

Toyota mulls launching more small cars, compact SUVs in India

Global car giant Toyota Motor Corporation will consider launching more small cars and entering fast growing segments like compact SUVs in order to achieve market leadership in India.

The company, however, said in the absence of a clear cut Indian government policy relating the auto industry such as fuel policy and import tariff, it is adopting a wait and watch strategy before deciding on setting up of a new diesel engine plant in the country or launching more hybrid cars.

DICV rolls out FUSO trucks in India

Daimler India Commercial Vehicles Pvt. Ltd. (DICV) alongwith Mitsubishi Fuso Truck and Bus Corporation, Japan (MFTBC) has launched its FUSO branded trucks in India. Manufactured at DICV’s Oragadam plant in Chennai, these FUSO trucks are based on technical platforms from Daimler and will be exported to markets like Africa and Asia. DICV will first launch the FUSO trucks in Sri Lanka in June, followed by Bangladesh, Zambia, Kenya and Brunei later this year.

The FUSO trucks comprise five models spanning medium/heavy duty (25-49 trucks referred to as FJ, FO, & FZ) and light/medium duty (9-16 tonnes referred to as FA & FI). In terms of component sourcing, the company will capitalise on joint procurement and will source 80 per cent of the components from local suppliers. A flexible production line will enable DICV to produce 17 models of both the brands from two assembly lines.

Albert Kirchmann, head, Daimler Trucks Asia and president and CEO, Mitsubishi FUSO truck and Bus Corporation, said, "The new Asia Business Model will enable us to bring strategies into reality. We have done our homework in repositioning our MFTBC operation, ramping up DICV business, and establishing presence of the BharatBenz brand in India."

Tapping Japanese funds for India; a win-win situation for both countries

The turnaround economic numbers emanating from Japan are just what the doctor ordered to step up big-ticket Japanese investment projects in India. The mega Delhi-Mumbai Industrial Corridor (DMIC) project — with its various earmarked zones, dedicated clusters, rapid connectivity and related feeder plans — needs to be fast-tracked to proactively coagulate much-needed funds on the ground. It would be a win-win proposition for the investment-constrained Indian economy, and should also help cure the growth sclerosis that has afflicted the Japanese economy for far too long.

More important, by finalising DMIC and other bilateral infrastructure projects, India would be able to access long-term funds at fine rates, with the added advantage of tapping proven project expertise available in a mature economy. It is true that funding from Japan is generally tiedaid requiring the involvement of Japanese corporates in project implementation. But for a massive project like the DMIC, with an estimated project cost of over Rs 4,50,000 crore, we do need to leverage international knowhow for top-of-the-line infrastructure. Reports say that land acquisition for DMIC has started in Haryana, Rajasthan and Gujarat and Maharashtra. We need to firm up clear time lines and benchmarks to avoid costly project delays. Also, a modular approach would better optimise costs.

The developed world is awash with liquidity. Developed country companies need orders and markets. Countries like India can absorb huge investment and offer the demand that large companies require. What is needed is to bring these elements together, in the form of bankable projects. It requires a little imagination, a little diplomacy and a lot of work in project planning. That should not be a major hurdle.