The Indian automotive market is quite a fierce space. While several new OEMs join the space every now and then, there are a few that either bid adieu due to non-profitability or struggle to survive. Nissan is one such name that has seen highs and lows. But can Nissan make a comeback in the Indian market? Let’s analyze.
Nissan: The Legacy So Far
Entering India back in 2005, Nissan created quite a buzz. The brand brought some exciting cars to the Indian soil, with the globally loved Nissan X-Trail (CBU Unit) being the torchbearer. The X-Trail crossover SUV established the brand’s image in the Indian market and established what Nissan was capable of.
For 9 long years, the X-Trail drove the brand forward along with other brilliant products which included the midsize luxury car, Teana which was brought to India in 2007 and the hot sports car, the 370Z which came in 2010. Apart from the CBU route, the brand also took part in local manufacture for cars like the classic Nissan Micra, Sunny and Evalia, which gave it quite a diverse inventory for Indian consumers to choose from.
In 2012, the brand also brought the price-sensitive brand “Datsun” to India that targeted consumers who wanted to go for affordable cars in the entry-level segment. The Datsun branding saw the reign of Datsun Go, Datsun Go+ and Datsun Redi Go, all of which became quite popular in the entry-level segment and helped Nissan to have a firm hold over the Indian market.
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What Went Wrong
Despite a diverse inventory on offer, the brand became a victim of fast-changing consumer needs and market dynamics. For starters, the consumers shifted from the entry-level segment to affordable cars in higher segments that were loaded with features. Secondly, consumers quickly shifted towards things like safety, style and performance. The result was that the Datsun brand itself failed to garner the attention of first-time car buyers that was focused towards cars like the Alto, Kwid etc. that offered supreme efficiency and better style.
For the rest of the inventory, Nissan failed to quickly change and adapt to the consumers’ needs. Horse-headedly focused on the price game, Nissan failed to acknowledge what consumers now wanted. It failed to even upgrade products that were once hot selling. As a result, low sales numbers forced the OEM to pull the plug on models such as the Micra, Sunny, Evalia, Terrano and a few others.
The Way Ahead?
While the discontinuation of almost 80% of the Indian inventory made it seem like it was time for the brand to say goodbye, thankfully the brand finally understood the pulse of new-age car buyers. As a response, Nissan launched the Magnite in a bid to capture the hottest-selling segment in the Indian car market; the subcompact SUV segment. The move proved to be fruitful, as the Magnite was a blend of affordability, peppy performance, good looks and ample features.
Pushing the brand sales forward, the Magnite alongside the Nissan Kicks helped the brand to survive amongst the competition. While the Magnite targeted the compact segment, the Kicks simultaneously locked horns with the likes of Creta, Seltos, S-Cross and other premium compact SUVs.
Despite Nissan not having a big piece of the apple, it is still determined to create waves in the market, with products like the Nissan Leaf, Nissan Note-e Power, Nissan Kicks Facelift and Nissan Terra, already in the pipeline, all having the potential to change the game for Nissan.
Much recently Nissan has also confirmed that it is bringing back the X-Trail in India after 8 years. This seems like a complete circle for Nissan. What started the brand name in 2005 is all set to return. Underpinned by the Alliance CMF-C platform, the X-Trail will come with the brand’s ePOWER drive system that involves a high output battery and powertrain integrated with a variable compression ratio petrol engine, power generator, inverter and 150kW front electric motor.
With the news of X-Trail returning to India, it is clear that Nissan is all set for a comeback. The success of it all is something that the future will tell us. But from the looks of it, we are sure that Nissan will rise once again.
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