Nissan Staging Triple-Digit Comeback in India

Sales through April soared 107% from prior-year to 19,401 units, the automaker says, while May deliveries more than doubled to 5,021 from 2,080 in like-2013. This result follows a 28.7% fall to 32,240 units in 2013, according to WardsAuto data.

“Our performance has been encouraging and our aim is to remain progressive,” Nissan India Group President Kenichiro Yomura says.

Adds Hiroshi Hata, the new chairman of Nissan’s Africa, Middle East & India Group, “We would bring in Japanese service and support. India is the market we have to revitalize. We may be late, but we are not too late.”

Aiming for a 10% share of the Indian market by 2017, Nissan has reformulated its India strategy. It plans to introduce new products, start a common-module family series of versatile platforms and place greater emphasis on new SUVs. But before launching new models, Hata says, he would like to give existing models a chance to succeed.

Nissan will facelift the Micra premium hatchback, sharpen the appeal of the flagging Sunny midsize sedan and bring back the X-Trail CUV. The highly successful Terrano SUV and Datsun Go hatchback also may be refreshed and an updated Go+ may follow.

The automaker also plans to add a new Qashqai 7-seat CUV to its India lineup. It may be built locally alongside the X-Trail and Terrano, all of which currently are imported as completely built-up units, reducing their cost and increasing profitability.

Even if 10% market share is not reached within the next 2-1/2 years, Yomura says, “we would achieve 8% market share and 8% operating profit with the margins that we have.”

Nissan in February declared it was terminating its relationship with Hover Automotive India, which had handled sales and distribution since 2008. While Hover operated 100 dealer outlets, mainly in urban centers, the automaker plans to add 200 outlets, mainly in smaller cities and rural areas.

Hover has not gone away, however. Chief Operating Officer Richard Spitzer has claimed its deal with the automaker remains in effect, adding, “Termination of Hover dealerships is ineffective and wrongful, and Nissan will have to face costs, damages and consequences.”