Nissan Maintains Green Strategy to Grow in Thailand

One of the smaller automakers in Thailand is ambitiously raising its sights.

Nissan has introduced new models it believes will connect with consumers while adding momentum to existing models and cloaking this new strategy in an earth-friendly shroud consistent with the direction being pursued by the Thai government.

At the 32nd Thailand International Motor Expo that opened last week the Japanese OEM unveiled two new models that are keys to this strategy: the racy, range-topping Navara Sportech and the eco-friendly X-Trail Hybrid.

Nissan has been promoting its portfolio of energy-efficient technology for some years here, notably the all-electric, zero-emissions Leaf that was demonstrated five years ago at the Thailand Board of Investment’s BOI Fair in Bangkok.

The Thai vehicle-taxation structure in 2016 will transition to a system primarily based on carbon-dioxide emissions and broadly following the direction the European Union has taken. Nissan has responded by rolling out a hybrid version of the latest-generation X-Trail that already has been well-received by the market here.

High-end hybrid models are popular in Thailand and Nissan has made a major commitment in local production of the compact SUV.

“This is the second market for Nissan to introduce (the) hybrid X-Trail in the world after Japan and also we are producing this locally,” Kazutaka Nambu, Nissan Thailand’s newly appointed president, says on the sidelines of the Motor Expo.

“Our objective is to follow the Thailand government direction to deliver ecologically friendly cars. The government is supporting eco-cars and also (low-CO2-emissions) cars…to guide the market to be more eco-friendly.

“Nissan agrees in this Thailand government direction,” Nambu says. “So we believe that the X-Trail will accelerate this direction, because if you a drive a big car it has big performance but (also has) economy and (is) eco-friendly, that is what we can deliver to the market.

“So we think this is the right direction and the right car for the customer.”

First to Bring Hybrid Technology to Hot Segment

The X-Trail comes to the Thai market with a hybrid 2.0L engine that is competitively priced, with just a small premium added to the cost of Nissan’s non-hybrid models. The automaker’s 2016 sales target for the X-Trail Hybrid is 5,000 units, and Nissan expects it to account for about 60% of the model’s total sales.

Compact SUVs are one of Thailand’s fastest-growing segments and Nissan is the first automaker to field a hybrid model. The X-Trail Hybrid has been on sale less than two weeks and Nambu is encouraged by the early response.

“Fortunately, it’s been very much accepted,” he says.

Nissan vehicle sales from January through August totaled 32,374, according to WardsAuto data. The Navara, the brand’s key model in Thailand, accounted for about one-third of those deliveries, but the latest generation of the pickup hasn’t penetrated much beyond its traditional consumer base since its introduction last year.

Looking to give the new Navara an eye-catching halo version in a style-conscious market, as well as tap into the fast-growing and increasingly crowded premium-pickup segment, Nissan unveils a Navara Sportech featuring distinctive new visual upgrades at the Motor Expo.

The Navara “is very much appreciated, not just in Thailand but internationally (as) this model is very attractive and well-made,” Nambu says. “This new model will enhance the attractiveness for the customer who needs a pickup that (has) a more-sporty, utility-vehicle-type image.

“We are targeting this kind of customer.”

Nambu believes the Navara’s winning of International Pickup of the Year honors in Europe will bolster marketing in Thailand and adds the Sportech version is competitively priced at 806,000-1,041,000 baht ($22,540-$29,100) across all versions.

Nissan’s Thailand portfolio also has the well-received Juke, which has helped the brand target a younger and more upwardly mobile consumer, and the March eco-car. This was the first Thai eco-car (including the Almera sedan version) and is the segment’s best seller, but it’s aging fast and Nissan has given it some cosmetic tweaks to boost its appeal.

“We are the pioneer for this segment and we are very proud of the eco-car and now we are trying to brush up our offer for the eco-car segment,” Nambu says. “Today we deliver this new calibration and we have a lot of plans to refresh our product offer.”