Nissan Motor Co. is reviving Datsun models in emerging markets, where the biggest growth is expected for affordable stylish vehicles, and has no plans to bring the brand back in developed markets.The offerings will be tailored for each market, including price and engine size, targeting the burgeoning market of first-time car buyers in countries such as India, Indonesia and Russia, where Datsun will be introduced from 2014, he said. Executives gave away few details, including specifics of Datsun models they had in the works. Corporate Vice-President Vincent Cobee said the new Datsuns will be entry-level cars in each nation, aimed at "up and coming" successful people who are "optimistic about the future."
He said two models will go on sale within the first year in the three nations, and an enhanced lineup of models will be offered within three years. Nissan faces intense competition from rivals, including other Japanese players such as Toyota Motor Corp. and Honda Motor Co., which all have their eyes on emerging markets that also include China, Mexico and Brazil. Growth has stagnated in recent years in more established markets such as Japan, the U.S. and Europe.Ghosn announced Tuesday in Indonesia that the Datsun will make a comeback, three decades after the shelving of a brand that helped define not only Nissan but Japanese carmaking in the U.S., as well as in Japan. It is a name that is synonymous with affordable and reliable small cars, according to Nissan. Datsun debuted in Japan in 1932, and hit American showrooms more than 50 years ago.It was discontinued globally starting in 1981 to unify the model lineup under the Nissan brand. Nissan also makes Infiniti luxury models.The new blue Datsun logo was inspired by the old one, according to Nissan. Ghosn said Nissan has been preparing the Datsun brand for years and was already developing models. He was confident Nissan had not fallen behind rivals.
"We just see an opportunity," he told reporters. "When you're ready, you should do it."
Nissan officials acknowledged only the older generation may be familiar with the Datsun brand and it may not even be recognized in emerging markets.
Japan - (AP) -- Nissan's revival of the Datsun won't include developed markets, Chief Executive Carlos Ghosn said Wednesday, outlining a strategy to target the revamped brand at emerging nations where the biggest growth is expected for affordable stylish vehicles.
The offerings will be tailored for each market, including price and engine size, targeting the burgeoning market of first-time car buyers in countries such as India, Indonesia and Russia, where Datsun will be introduced from 2014, he said.Executives gave away few details, including specifics of Datsun models they had in the works.Corporate Vice President Vincent Cobee said the new Datsuns will be entry-level cars in each nation, aimed at "up and coming" successful people who are "optimistic about the future."
He said two models will go on sale within the first year in the three nations, and an enhanced lineup of models will be offered within three years.
Nissan Motor Co. faces intense competition from rivals, including other Japanese players such as Toyota Motor Corp. and Honda Motor Co., which all have their eyes on emerging markets that also include China, Mexico and Brazil. Growth has stagnated in recent years in more established markets such as Japan, the U.S. and Europe.Ghosn announced Tuesday in Indonesia that the Datsun will make a comeback, three decades after the shelving of a brand that helped define not only Nissan but Japanese carmaking in the U.S., as well as in Japan. It is a name that is synonymous with affordable and reliable small cars, according to Nissan.
Datsun debuted in Japan in 1932, and hit American showrooms more than 50 years ago.
It was discontinued globally starting in 1981 to unify the model lineup under the Nissan brand. Nissan also makes Infiniti luxury models.Tsuyoshi Mochimaru, auto analyst with Mitsubishi UFJ Morgan Stanley Securities, said the Datsun name helps differentiate cheaper models targeting emerging markets from Nissan's other models.
"Emerging markets are where the growth is, but what will sell are cheaper cars, where profit margins will be lower," he said. "By separating the brand, you avoid hurting the value of the Nissan brand."
The new blue Datsun logo was inspired by the old one, according to Nissan.
Ghosn said Nissan has been preparing the Datsun brand for years and was already developing models. He was confident Nissan had not fallen behind rivals.
"We just see an opportunity," he told reporters. "When you're ready, you should do it."
Nissan officials acknowledged only the older generation may be familiar with the Datsun brand and it may not even be recognized in emerging markets.
But they said it stood for good styling, durability and safety.
Japan (MarketWatch) -- A day after announcing the return of its Datsun vehicle brand in three key emerging markets, Nissan Motor Co. said Wednesday it would expand the new line of cars globally--but not in developed markets such as the U.S. and U.K. where the brand made its mark 30 years ago.The Japanese car maker said Tuesday it plans to resurrect the brand for small, sporty, inexpensive cars to attract young, first-time buyers in the world's fastest growing markets in developing economies. The once-vaunted brand, which was phased out in the early 1980s, is scheduled to hit the roads of India, Indonesia and Russia in 2014.
"Our priority for the moment is Indonesia, India and Russia, but this is a first step. Obviously, the Datsun brand will become global," said Nissan CEO Carlos Ghosn at a press conference at company headquarters in Yokohama, following the company's initial announcement in Jakarta on Tuesday.But Ghosn added that the vehicles will not be offered in mature markets. "I don't think, frankly, today that we have a plan to launch Datsun in Japan or any developed country...This is for high-growth emerging markets," he said.
Nissan said Datsun's ultra low cost vehicles-which the company says will be about half the cost of its current lowest end vehicles that start at $10,000-will target first-time new car buyers, especially those looking to trade up from motorcycles or used cars.
Japan's second-largest auto maker by volume after Toyota Motor Corp. aims to tap that growing customer base without tarnishing the value of its existing product lines--the middle-income Nissan brand and upscale Infiniti brand.
The company says Datsun will allow it to compete in a segment that makes up from one-third to one-half of all new car sales in India, Indonesia and Russia. It comes as Nissan is racing to catch up in those markets, where its presence has been overshadowed by rivals such as Honda Motor Co., Toyota and Hyundai Motor Co.
Nissan said it will debut two Datsun models in each of the three initial markets in 2014 and then expand that product range by an unspecified number within three years. It provided few details on design or specifications of the new vehicles, but said they will be tailored to driver preferences and road conditions in each country.
For example, Nissan said only vehicles with engine sizes of 1.2 liters and below will be introduced in Indonesia, while vehicles in Russia will incorporate larger engines.
In Mumbai, Datsun unit Program Director Ashwani Gupta said Nissan will seek to price the initial models in India under INR400,000 ($8,000), which will help it compete in the biggest segment of the local market. Maruti Suzuki India Ltd.'s WagonR and Hyundai's i10 and Eon are the major brands in the INR300,000-INR400,000 price range.
While executives said Datsun might cross-share platforms and jointly source components with related operations, the cars won't be rebadged versions of the Chinese market Venucia brand made with partner Dongfeng Motor Group Co. or of Dacia vehicles sold by Nissan sister company Renault SA in Central Europe.Instead, Nissan said it has been quietly developing an entirely new line of cars for more than two years that incorporates technological innovations and fresh styling cues.
"You should not look for proximity to an existing Japanese or American vehicle," said Vincent Cobee, a corporate vice president in charge of the Datsun brand.
"Most customers are extremely smart buyers demanding (cars) for their particular needs. They are tired of receiving what in America you would call a 'hand-me-down' from the Western world."
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