In order to roll out low cost cars, Japanese auto maker Nissan has decided to bring in its sub brand Datsun for selling in developing markets such as Indonesia, India and Russia. The Renault-Nissan alliance is expected to acquire Russian brand Lada in 2014. It would be building a new small car using the platform and underpinnings from Lada Kalina. In addition to platforms, braking, steering mechanics and fuel systems would also be shared between Datsun and Renault-Nissan.
Exterior body and interiors of the new small car would be vastly different from those of the Lada Kalina. This small car is anticipated to be out in 2015, and by this time Datsun would be entering into other emerging markets as well. In Indonesia. Nissan has plans of investing USD 395 million in the next two years in Indonesia The company would be bringing in new product lines and expanding operations, whereby it would be increasing to 2,50,000 units by 2014. This would help to generate more number of job opportunities for the locals in Indonesia.
This method of bringing in low cost sub brands is similar to the strategies adopted by Dacia from Renault and Daihatsu from Toyota. In the low cost brand Daihatsu, Toyota Motor Corporation has a 51 per cent stake and has been distributing Daihatsu vehicles in the North American automotive market.
As per an old report, The Wall Street Journal highlighted several sources quoting information about Datsun. Carlos Ghosn, CEO of Renault-Nissan said that starting prices for Datsuns could be from GBP 2,300 or USD 3,000, as per existing exchange rates. It remains to be seen how well the worldwide Datsun model can be replicated in India.
