SA’s economic competitiveness stumbling block to Datsun production

15th September 2016

By: Irma Venter

Creamer Media Senior Deputy Editor

  

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South Africa is the ideal place to produce Datsun vehicles for Africa, “but not today”, says Datsun global head Vincent Cobee.

Africa as a continent, with its rapidly growing middle class, is every consumer product company’s dream, he notes. However, it is also a highly complex market, made up of almost 60 countries.

“We think the market is actually 30 megacities rather than 60 countries,” notes Cobee. “Where would you make products to serve this market?”

The ideal answer today is India, he notes, “but, that may not be the answer tomorrow”.

The logical place for a production hub should be South Africa, says Corbee, as it has the skills, infrastructure and experience to produce vehicles. However, the new-vehicle markets in South Africa and Africa lack volume, while there is also a question mark over South Africa’s sustained economic competitiveness.

“We look forward to an economic environment that proves us right, that proves that cars can be made here.”

Cobee says the Indian market has proved its sustainability, with a market of five-million new cars a year forecast by 2020.

“Can the African market be more than five-million in five to ten years?”

If this happens, Africa would require a number of large-scale plants, with Morocco, Egypt and South Africa the logical places for these plants, says Cobee.

The budget Datsun brand has sold around 180 000 new vehicles since its global launch – revitalised and reintroduced by parent company Nissan – more than two years ago. Following its introduction in India and Indonesia, Datsun started sales in Russia and South Africa in late 2014.

Cobee says the Russian market has been struggling, owing to poor economic growth.

Overall, however, he is satisfied with the global growth achieved.

“Nothing is built in one day.”

Datsun sales will grow by between 40% and 45% this year, says Cobee.

New markets the brand is targeting are Nepal, Kazakhstan, Lebanon, Sri Lanka and Mauritius.

There are three Datsun plants globally, in India, Indonesia and Russia, producing five models in total. South Africa’s Datsun products are imported from India.

In South Africa, Datsun sold 9 730 units as of August 31, which is an average of 436 units a month. The brand accounts for roughly 33% of all Nissan new-passenger car sales in South Africa.

There are 99 dealers selling the Datsun brand in South Africa.

August saw the launch of the seven-seater Go+ multipurpose vehicle, at R134 900, as well as the Go+ panel van, selling at R149 900.

The panel van offers a loading capacity of 542 kg, and has a loading volume of 3.43 m3.

 

Edited by Creamer Media Reporter

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