Nissan Moving SE Asia HQ from Singapore to Thailand

Nissan is moving its Southeast Asian headquarters from Singapore to Thailand as part of a 6-year business plan to more than triple sales to 500,000 units with a 15% market share by the end of 2016.

Nissan March Eco-Car Available in Indonesia.

Nissan sold 150,000 units for a 6% Southeast Asian market share in 2010.

It is creating a subsidiary, Nissan Motor Asia Pacific, as its strategic regional headquarters of the Association of Southeast Asian Nations region.

Nissan says one of its key strategies to reach its growth target is the introduction of more than 10 new models during the next six years, as well as collaboration with governmental organizations to gain competitive advantages.

The plan, part of the auto maker’s Nissan Power 88 initiative, targets markets including Thailand, Indonesia, Malaysia, the Philippines and Vietnam.

NMAP and Nissan Motor Thailand President Toru Hasegawa says Nissan Power 88 aims to increase brand and sales power, grow global market share to 8% by fiscal 2016, and raise its corporate operating profit to 8% by 2017. “As car demand in emerging markets has been rising rapidly, we foresee it will soon capture more than half of global sales volumes. ASEAN countries, including Thailand and Indonesia, are among those we have marked as our strategic growth drivers,” Hasegawa says in a statement.

The ASEAN midterm plan has four parts, including establishing NMAP in Thailand as Nissan’s strategic regional headquarters.

It aims to double regional production capacity from 350,000 to 700,000 units a year, and accelerate localization of research and development and powertrain production.

The Nissan Technical Center Southeast Asia will be expanded in Thailand and Indonesia by tripling the number of total engineering staff, from 120 now to 370 in 2016.

Jatco, Nissan’s affiliate company, previously announced it will spend $250 million to build a plant to produce continuously variable transmissions in Thailand.

Finally, NMAP seeks a role in the Indonesian government’s low-cost green-car program, seen as a key driver to boost sales in the region.

Nissan Thailand’s “Power Up 2016” plans more than 10 model launches over the next six years, with the aim of doubling market share from 7.4% in 2010.

The dealer network will add 50 outlets by the end of 2013, raising the total to 210.

Nissan Thailand says it also will launch an eco-car sedan in Thailand to join its eco-car hatchback.

“This sedan is the second model of Nissan’s global compact car lineup designed to deliver stylish, high-quality, affordable, and outstanding fuel economy,” the Nissan statement says. Production of the eco-car sedan is scheduled to start in September.

Subsidiary Nissan Motor Indonesia says it will be a major player in the government-initiated, low-cost green car program. It plans to spend $312.5 million to expand plant production capacity to 180,000 units by 2013 and build an engine assembly plant. Staffing levels are projected to increase from 900 employees now to about 2,500.

NMI’s sales goal is to reach 90,000 units in Indonesia by 2013. This year’s target is 60,000 units for a more than 7% market share.

Elsewhere, Nissan’s China joint venture partner, Dongfeng Motor, says the JV will spend $7.76 billion as part of its 5-year plan to spur growth in the world’s largest automotive market.

Dongfeng says in a statement it aims to increase sales from 1.3 million vehicles to more than 2.3 million units by the end of 2015. It is looking for a 10% share of the Chinese market.

The JV is to build a facility in Jiangsu Province to produce light-commercial vehicles. A second passenger-vehicle manufacturing facility in Guangdong province starts operations early next year, and a new plant in Hubei province to produce heavy and middle CVs is scheduled to come online this year.

The JV will increase its capacity from 1.2 million vehicles now to 1.5 million units in 2012 and 2.3 million units by 2015. The number of dealer outlets will be increased from 1,400 now to 2,400 by 2015.

Over the same period, the company will launch about 30 vehicles, including a fully electric, zero-emission car for the Chinese market in 2012 under Dongfeng Nissan’s original new brand Venucia.

A total of five new models will be launched under the Venucia label, with annual sales expected to reach 300,000 units by 2015.

“The new plan, with its investments in capacity, products and innovation, will ensure that China continues to be Nissan’s largest global market,” Nissan President and CEO Carlos Ghosn says in a statement.