- Major expansion strategy for Africa, Middle East and India
- Initiated as a part of the company’s six-year midterm plan called ‘Nissan M.O.V.E. to 2022’
- Expected to maintain and build on solid profit margins in the region
- Develop strong partnerships and use local talent to meet growing vehicle demand
Japanese car manufacturer, Nissan Motor Co., Ltd. has revealed its major expansion strategy for Africa, Middle East and India. The latest development will emerge as part of the company’s six-year midterm plan called ‘Nissan M.O.V.E. to 2022’. The company plans to maintain and build on solid profit margins in the region. Additionally, the company will further develop strong partnerships and use local talent to meet growing vehicle demand. Industry-wide sales in the region are expected to rise by about 40 per cent to more than 12 million vehicles a year by 2022.
In India, the company will strengthen its dealership network and develop the power of the Datsun and Nissan brands through initiatives including sponsorship of the International Cricket Council. Nissan has strengthened its foundation for growth in India with a 4,80,000-vehicle capacity plant, along with a large research and development center – both in Chennai with its Alliance partner, Renault.
In the Middle East, Nissan will add new models to its already strong presence in key segments, building on its fiscal year 2017 sales of 96,600 vehicles. The plan calls for boosting Nissan’s current market share of 16 per cent in the Gulf states – where Nissan experienced its largest market share growth in fiscal year 2017 – to 20 per cent by the end of fiscal year 2022. In Saudi Arabia, market share is expected to double from seven per cent in fiscal year 2017 to 14 per cent by the end of the plan. Other market initiatives will include growth in the fleet segment and improved dealership facilities. The company will also show Nissan Intelligent Mobility technologies at Expo 2020 Dubai as it prepares to offer electrified models in the region.
Nissan plans to strengthen its market share in South Africa, which currently stands at 10 per cent, substantially over the course of the plan. Nissan’s sales in South Africa jumped by 26 per cent to 53,400 vehicles in the fiscal year 2017. The introduction of new models, including the new Nissan Micra, is expected to boost demand further. Nissan is working on building its market position in Egypt, where it’s the only manufacturer with its own plant, and on the company’s first-mover success in Nigeria, where Nissan vehicles are assembled with a partner. Additionally, the company is studying further manufacturing opportunities in sub-Saharan Africa.
Speaking on the occasion, Peyman Kargar, chairman of Nissan in Africa, the Middle East and India said, “Under the Nissan M.O.V.E. to 2022 plan, the company is looking to capture the full potential of the Africa, Middle East, and India region. Our ambitious plans reflect the exciting opportunities ahead. Nissan has already developed a strong presence within this fast-growing region, and we are well-positioned to maximize our growth and make an increasing and lasting contribution to Nissan’s overall performance.”