Nissan on a mission

BY NEIL MCDONALD | 25th Jul 2005


NISSAN is preparing to launch 14 new vehicles on to the Australian market over the next four years.

Some will be replacements for existing models, but Nissan Australia managing director Shinya Hannya said others would enter into new segments not previously contested by the importer.

"Each vehicle must prove its worth," he said. "I will be doing my level best to ensure that as many as possible of these new vehicles will come to Australia.

"At the same time we are watching the Australian market and individual segment growth very, very carefully to ensure that we are bringing the right new products to our customers at the right time."Speaking at the launch of the new Pathfinder and Murano earlier this month, Mr Hannya said he was confident that Nissan Australia could achieve the bold growth targets set for it by its parent company.

Globally, Nissan Motor Co has planned 28 new vehicles and sales of 4.2 million by March 31 2008, when the Nissan fiscal year ends.

Mr Hannya also took the opportunity at the launch event to unveil the new Navara, due in November, as well as the Pulsar replacement, the Tiida sedan and hatch, which are due to go on sale next February.

"Currently, and excluding some of our lower-volume models, Nissan’s effective market coverage in Australia is around 35 per cent," he said. "What our future product plan means to us is that our effective market coverage could expand to as high as 60 per cent and provide us with significant volume and profit opportunities.

"The incremental growth in sales volume offered by these models is critical if we are to achieve our long-term goals."Nissan sales targets are expected to grow year-on-year but Mr Hannya forecasted "considerable" growth in 2006, 2007 and 2008, with a sales target of 70,000 Nissans annually by 2008.

Last year Nissan sold 63,654 vehicles. It currently holds fourth position on the Australian sales chart behind Toyota, Holden and Ford.

Although Nissan is not talking specific model lines just yet, Mr Hannya has said he would like to re-enter the critical small and medium segments, which means a possible return of the Micra hatch and a wide array of offerings to fill a gap in the Honda Accord and Mazda6 arena, including Primera or Skyline from Nissan’s Japanese stable.

There is an all-new Patrol 4WD in the pipeline – which Nissan has confirmed will remain as tough and rugged as the current all-terrain truck – and a production version of the Qashqai small 4WD concept shown at last year’s Geneva motor show.

The next-generation X-Trail, believed to be strongly related to the Zaroot concept car shown at this year’s Geneva show, is also due some time in 2007, while the company is known to be looking at the return of the Micra to take battle in the sub-$20,000 segment. The cute Micra CC convertible is also under consideration.

Widening the focus, the Infiniti brand and the much-anticipated "Godzilla" – the all-new GTR – are also in Mr Hannya sights, although no firm business plans have been announced.

Nissan Motor Co’s chief operating officer, Toshiyuki Shiga, who was in Australia last week, confirmed that the bid to make the Infiniti line-up a global player was on track, with the luxury brand well advanced on its Asian rollout in Taiwan and Korea. China will be next.

The latest Infiniti products are a far cry from the ill-conceived Infiniti Q45 which sold here briefly in 1989 and in the early 1990s. Today the Infiniti brand has expanded into a Lexus competitor, with the G35 sport sedan, G35 sport coupe, M35/M45 sedan, FX35/FX45 SUV and Q45 sedan.

Apart from actual considerations about relaunching the brand here, Nissan will also have to consider whether it should sell as a stand-alone luxury offering in the Lexus mould, or through existing upgraded Nissan dealers.

Apart from the new vehicles, Nissan Motor Co is also pushing advanced technologies, among them lane-departure technology and a hybrid-electric mid-size Altima, which, despite skyrocketing local fuel prices, is unlikely for Australia.

Nissan Motor Co has also lifted research and development spending by 50 per cent since 2002. Its R&D investment now stands at around 400 billion yen ($A4.7 billion).

Relevant to Nissan’s bold forecast is the upgrading of its dealer network, which is under way.

Mr Hannya would not confirm the actual cost to Nissan, or its dealers, but admitted: "it’s in the millions".

"Importantly, all our dealers were prepared to invest once they knew what was coming," he said.
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