Nissan's Strategy for Emerging Markets

Plans production capacity of two million by 2014-15 in China and in the Americas

2012/07/19

Summary

Nissan's Global Sales Reported below is an outline of Nissan's strategy for emerging markets, focused on production capacity expansion in these regions.

 Nissan Power 88, its new mid-term plan for the six years from FY2011 through FY2016, aims to raise both corporate operating profit and worldwide market share to 8% by FY2016. In FY2011, the first fiscal year, in spite of the strong yen and the two large-scale natural disasters, the OEM achieved the record high sales and growth worldwide, most notably in emerging markets. For FY2012, Nissan plans continuous growth in emerging markets with sales growth and production capacity expansion as its top priorities.

 Nissan aims to become the No.1 Asian brand in China, Russia, Brazil and some other countries and plans to vastly increase production facilities in the major emerging countries listed in the chart below.

 In FY2016, the last fiscal year of the mid-term plan, Nissan reportedly aims to sell 7.6 million units worldwide, based on the global demand forecast of 95 million units. It envisions to establish the global production operations capable of providing over 8 million units at the end of FY2016, while its capacity at the end of FY2011 was 5.4 million units. Nissan, therefore, says that it will develop new projects for facility expansion.

 Nissan plans to introduce the Venucia brand in China in 2012 and the Datsun brand in three countries including Indonesia in 2014 in order to enter the entry-price segment, into which it has not provided products.

Facility expansion plans in major emerging markets

Latin America  Construction of new plants: Mexico plant with annual production capacity of 175,000 units to be operational at the end of 2013 & Brazil plant with 200,000 units, early 2014. More than one million units/year to be produced in Mexico in the midterm.
 Total production capacity in the Americas to be increased to 2 million units in FY2014 from 1.2 million units in FY2011.
China  Production capacity at existing Huadu Plant and Xiangyang Plant increased. A new plant in Dalian with production capacity of 150,000 units to be built with scheduled opening in 2014. Production operations to be established to output a total of 2 million units/year in 2014 or 2015.
Russia  The Renault-Nissan Alliance will hold 50.01% stake in AvtoVAZ, the largest Russian OEM. The three OEMs will establish operations to output a total of 1.6 million units/year by 2016.
ASEAN
region
 Production capacity to be increased to 700,000 units in FY2016 from 385,000 units in FY2011.
 Production capacity in Indonesia to be increased to 250,000 units in 2014 from 50,000 units in early 2011.
Related reports: Beijing Motor Show 2012: Nissan's exhibits (July 2012)
Nissan's New Midterm Plan (August 2011)