Nissan eyeing at light commercial vehicle segment in India

The Japanese automobile major Nissan Motor Company has some big plans concerning Indian auto market which not only includes passenger vehicle market but also light commercial vehicle segment. A report in The Business Line stated that according to Hideto Murakami, Corporate Vice-President (Global LCV Business Unit), the joint venture with Ashok Leyland is a critical part of that strategy.

He was quoted as saying “From my point of view, India is a very important market for Nissan going forward and we need to do well here. Thailand, Indonesia, Brazil and Russia will also be the other growth drivers for the company.” Nissan's LCV business unit is barely eight years old but is expected to generate big numbers in the coming years. The product range does not go beyond eight tonnes.

It was reported that in India, the company has launched the Dost pickup, which is part of the segment where the Tata Ace rules the roost. “We needed a good partner for this market especially when we did not know it too well but still had to make a presence. This collaboration with Leyland has helped us with faster product development,” Murakami said. Nissan brings in the technology while its local ally helps out with the costs and marketing. “In my view, the synergies are perfect,” he added.

The report mentioned that the mini-truck market momentum began with the launch of the Tata Ace, which prompted companies like Piaggio and Mahindra & Mahindra to follow suit with competing products. In contrast, Leyland has been relatively late, but the tie-up with Nissan could see a faster ramp-up in new launches. The fact that the Ace doubles up as a people's carrier will also translate into attractive growth avenues for the Dost. Keeping this in mind, India has the potential to play a bigger role for Nissan's LCV business in the future where it could even emerge as a key global hub. The building blocks are already in place, especially a robust supplier base, which is critical from the viewpoint of costs. However, Murakami reiterated that it was still too early to think so far ahead as it was important to first generate the volumes in India.