Bonjour, new guests from small-town India
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
Newly launched Nissan Magnite
Japanese automaker Nissan’s new compact SUV Magnite with an aggressive price tag of ₹4.99 lakh (ex-showroom) may well decide its fortunes in the country.
In March 2010, after inaugurating the Renault-Nissan combine’s car manufacturing factory at Oragadam near Chennai, Carlos Ghosn, then Chairman & CEO of the Alliance said the group was poised to play a significant part in India over the next 10 years. A market share target of 10 per cent was set (including that of Datsun brand).
Ten years later, its partner Renault has managed garner a market share of about 4 per cent in the crowded Indian car market. But Nissan’s journey has not been impressive. Its market share in passenger vehicle market is less than one per cent.
Nissan fumbled its India strategy due to several reasons. It tried to play the “cost/price” game rather than playing to its strengths. Also, itscommitment was not seen as serious enough to the Indian market, which was growing so rapidly with different segments and evolving technologies.
Its business model of partnering with a 3rd party for sales and service, which are usually critical for an automotive company also backfired.
“In the past, Nissan had lacked a key model that could excite the customers for a fairly long period. Also, the delay in model launches was quite big like the gap between Terrano to Kicks. This in turn led to a vicious cycle of dealer profitability suffering, which in turn led to shutting done of outlets, adverse effects on service standards, etc. which hurt customer service and the brand even further, says Ashim Sharma, Partner & Group Head Business Performance Improvement Consulting at Nomura Research Institute.
“Nissan SUVs are globally recognised and have been a core driver for its success. Nissan has realised that it has to stick to its original identity rather than trying to follow others. Hence, now it's making an attempt to recreate itself in India. So, if the Magnite has the same DNA, then it should be a strong product. Even its pricing is pretty aggressive, so it's expected that it will do well,” says Suraj Ghosh, Principal Analyst-Powertrain Forecasts, IHS Markit.
With its aggressive pricing, first in class features, the Magnite has ticked many of the boxes. However, the sales success after the initial launch phase will hinge a lot on expansion of sale and service outlets beyond the major cities so as to tap into the vast rural and tier-2 city demand and that of course coupled with the service quality will be vital for success.
The company has exhibited renewed commitment by ramping up sales and service network ahead of the new vehicle launch.
Initiatives such as virtual test drive, new express service, etc that Nissan has started will certainly help boost sales. Nissan has great products in the global portfolio and at some point, the India product strategy would hopefully include some of those products, says Sharma. Magnite is the `make or break' product for Nissan in India. The company desperately needs a top selling model to remain invested in the India growth story.
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
Citroen’s first vehicle sports a novel design and European interiors. It is also meant to be as comfortable as ...
The pandemic is only the tip of the iceberg that the country’s cash-poor airlines — both regional and national ...
The government is yet to specify the framework of its recently announced old vehicle scrappage policy
With initial public offerings galore, we give you a cheat sheet to score some good grades
Biggest risk in selling funds in a rising scenario is exiting early and missing out on further gains
Go for a standard vector-borne diseases policy if you don’t have a regular health plan
No credit risk is an attraction, but note the nuances
After facing severe droughts for several years, farmers in western Maharashtra have turned the corner through ...
A toast to a traditional drip irrigation system still going strong in the Northeast
Raza Mir’s ‘Murder at the Mushaira’ works well as a historical novel that captures the sunset years of the ...
If you see garbage lying on the streets, remove it, says a dedicated plogger on a clean-up drive
Its name is the starting point of a brand’s journey and can make a big difference in the success sweepstakes
Sober spirits are the in thing
A peek into where ad spends went last year and where they are headed tomorrow
Can Swiggy Instamart disrupt the ecommerce groceries space, currently ruled by the Amazons and Big Baskets? ...
Three years after its inception, compliance with GST procedures remains a headache for exporters, job workers ...
Corporate social responsibility (CSR) initiatives of companies are altering the prospects for wooden toys of ...
Aequs Aerospace to create space for large-scale manufacture of toys at Koppal
And it has every reason to smile. Covid-19 has triggered a consumer shift towards branded products as ...
Please Email the Editor