It was India’s largest exported model last fiscal with an impressive tally of 75,000 plus units. More recently, its manufacturer celebrated the occasion of the 500,000th car exported from the subcontinent where the Micra accounts for a lion’s share. Yet, when it comes to the domestic market, sales of Nissan’s premium hatchback barely average 700 units a month.

Company sources say the automatic version launched this week is the first step towards addressing this problem. The occasion was to commemorate five years of the Micra at a glittering function in Mumbai.

This lavish display was perhaps ironic given the Micra’s tepid showing in this market even while it has been super successful on the exports front. Yet, company sources insist that this marks the beginning of a turnaround strategy.

Starting trouble “Indian customers are moving to automatic cars and the 4th generation CVT will meet this need. We believe the brand has the potential to grow,” they say. The Micra ended up facing a series of headwinds which possibly thwarted its growth here. When it was launched in 2010, Nissan had an arrangement with Hover Automotive for distribution of its cars. It was only after the two parted ways did the company kick off the process of creating its own outlets across the country and expand the customer base.

Also, from the viewpoint of a hardcore business proposition, it just made more sense to export the Micra. This was precisely the reason why its production was shifted from the UK to India to make the most of a cost-effective base. Nissan logically prioritised shipping out the model to those countries where it was already well established and in constant demand. It also ended up being a profitable option as a result.

In addition, the automotive slowdown in India through fiscals 2012 and ’13 hardly helped the Micra’s cause which, in turn, justified the export business model. Small wonder then that the last five years have seen over five lakh units shipped out from India while domestic sales in contrast have been a minuscule portion of this number.

In the process, Nissan’s growth also languished at a time when India was critical to its Power 88 plan (eight per cent global market share by 2016). The lacklustre showing of the Datsun has only made things more difficult which means the company needs to step on the gas real fast. Next year will see another compact car to join the Datsun family.

Back on track For the moment, though, Nissan will be keen to increase the presence of the Micra. Officials say work has kicked off in right earnest with dealerships across the country now geared up to push sales more aggressively. Customers need to be told of its strong points including the fact that it is the country’s top-selling export model. “Conveying the pride-of-ownership message is top priority,” say officials.

Nissan is only too aware of hardcore market realities like the formidable hold of Maruti Suzuki and Hyundai which have a combined share of nearly 70 per cent with more price-competitive models to offer.

There are also other rivals to contend with in the premium compact space, a list that includes Volkswagen, Ford, Toyota, Honda and Tata Motors.

Yet, the positive side to this tough climb is the fact that a growing mass of young buyers across every nook and corner of India is open to the idea of trying out new brands. In today’s era of smart phones, getting information about a new model is a cinch.

This is something that Nissan will be banking on as it goes about the task of putting the Micra back on track.

Yet, it cannot ignore the reality of reaching out personally to each of these buyers in its dealerships.

By the end of the day, buying a car in India is still a family-led decision which means dealerships will have to be completely geared up to meet the challenge of connecting with customers. It is the only way the Micra can hope to be a part of more homes in the country.

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