Every car maker is ready to tap the Indian small car segment to make profits. The segment accounts for nearly two-third of the sales in India and is still largely dominated by Maruti Suzuki followed by Hyundai Motors. There is enough room for everyone in this segment and foreign automakers have realised the same very strongly, including Nissan.
The Japanese auto maker is now planning to introduce a $3000 car for the Indian market that “will contribute to our growth in terms of volume and profitability,” says Gilles Normand, Nissan's corporate vice-president in charge of Africa, the Middle East and India.
Nissan is in talks with Bajaj to produce a small car for the Indian market. In recent talks with Bajaj, Nissan realised that it operates on 4% margin as compared to 10.5 % margin of Bajaj. “We discovered that their margin on three-wheeler activities is by far above our current margin on our four-wheeler activities," said Normand.
Now the company is planning to introduce a $3000 car that will compete with Tata Nano priced at $2500, while maintaining high margins.
