Nissan India remains steadfast on commitments despite shift in global strategy

Nissan India is committed to its previously announced plans and growth trajectory for the Indian market, even as the global automotive giant navigates significant strategic shifts. The resolute stance was made clear recently by the company officials amidst recent industry speculation regarding its long-term presence, particularly following adjustments to its global manufacturing footprint and alliance structures.

Saurabh Vatsa, Managing Director, Nissan Motor India, during a recent press conference, underscored this unwavering resolve, emphasizing that despite changes to Nissan's worldwide plans, the company's commitment to India remains steadfast and its local initiatives are progressing as scheduled.

Nissan's global operations have been grappling with significant financial headwinds, with fiscal year 2024 seeing the company report a considerable net loss and a sharp decline in operating profit. In response to this, Nissan launched its comprehensive "RE: Nissan" recovery plan. The idea here is to drive efficiency and profitability across its operations by having job cuts, factory closures, and extensive cost reduction efforts.

It is against this backdrop of global realignment that Nissan India's pronouncements gain further significance. Vatsa directly acknowledged these global shifts, stating emphatically that "Despite changes to global plans made to Nissan, Nissan India remains committed to announced plans and the plans are on track."

He further clarified the manufacturing arrangement, explaining that while Renault now holds 100 per cent of the Chennai plant, Nissan has secured crucial production capacity through a contract manufacturing agreement. Vatsa explained that this allows Nissan India to convert fixed manufacturing costs into more flexible variable costs, enhancing agility and freeing up capital for future investments.

Nissan India’s ambitious plans for future

Contrary to the recent reports, Vatsa emphasises that Nissan India is charting an aggressive growth trajectory, underpinned by a substantial €700 million (approximately ₹6,300 crore) investment primarily dedicated to new product development. This was announced earlier, and Vatsa pointed out that the investments are on track.

The company has set ambitious production and sales targets, aiming to double annual sales to two lakh units by FY2026-27, with one lakh units designated for domestic sales and one lakh for exports. Vatsa affirmed that the Renault Nissan Automotive India Private Ltd (RNAIPL) plant in Chennai, with its total installed annual capacity of 4.8 lakh units, is sufficiently equipped to meet these mid-term goals, providing sufficient capacity for the next five years.

Central to this expansion is a robust product pipeline. Nissan India had earlier announced its plans to launch a new seven seater B-segment MPV, which is likely to be based on the Renault Triber along with a 5 seater and seven seater C-Segment SUVs. The 7-seater B-segment MPV is expected in Q1 2026, while the 5-seater C-segment SUV slated for mid-2026, Vatsa confirmed.

The C-Segment SUV will share its underpinnings with the upcoming Renault Duster. Additionally, a 7-seater C-segment SUV is planned for early 2027. According to Vatsa, this model will provide a unique design for both the outside and the inside and will not be just a stretched version of the 5-seater - indicating a wider strategic intent in the lucrative SUV segments. In addition to fresh models, Nissan India is looking to grow its physical presence - it intends to grow its dealership network from about 160 outlets to 180 by the end of 2025 and aims to end this fiscal year with 300 touchpoints.

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