Datsun sold 5 645 new vehicles in South Africa last year, which made it the number one seller in the entry-level A-segment, says Datsun South Africa (SA) GM Des Fenner.
This number equates to around 470 units a month. Fenner is hopeful sales will reach 500-plus units a month by March, which should take the brand to an annualised value of more than 6 000 units a year.
The Datsun brand, Nissan’s rebooted global budget brand, launched in South Africa on October 20, 2014. The brand’s aim is to introduce a range of affordable vehicles, promising low cost of ownership to South Africa’s motor-buying public, with a strong emphasis on first-time new-car owners, explains Fenner – which is why the Datsun Go five-door hatchback starts at R99 900, despite a 4.5% price hike in January.
The luxury-spec Go sells for R114 900.
At this price, buyers get, among other features, a driver-side airbag.
The Go is currently the only Datsun model available in South Africa.
Fenner believes Datsun SA will be able to defend its position in a market expected to see a drop close to 10% in new-vehicle sales in 2016, as high interest rates and a weak rand take their toll.
One of the main reasons for this will be the introduction of a new model, the Go+, which will make its debut in South Africa later this year.
The Go+ is a five-plus-two seater, with two fold-away seats in the rear. Fenner says the new multipurpose vehicle will assist in growing Datsun volumes, even if it may cause some cannibalisation of Go sales.
Another model that may add to Datsun volumes is the Redi-Go concept hatchback, which made its first appearance at the New Delhi motorshow earlier this year.
“We are busy with market research to see if we can introduce this model into South Africa,” says Fenner. “If we can, it will be extremely well priced.”
The Go Cross is another interesting model on the Datsun horizon, even if it currently exists only in concept form. This crossover may only reach South African showrooms in 2018.
Dealer Expansion
Datsun SA will expand its dealerships from 69 in South Africa, Botswana, Namibia and Swaziland to 100 by the end of March 2017, with all 119 Nissan dealers able to service Datsun vehicles, says Fenner.
Datsun shares Nissan dealership facilities, but has 20 standalone showroom dealerships, which are responsible for around 80% of sales.
An increase in dealerships should also boost Datsun sales in South Africa.
This year will also see the expansion of the Datsun brand into Africa, notes Fenner. Datsun SA will introduce the brand into a number of right-hand-drive markets, namely Zambia, Tanzania, Uganda, Kenya and Mauritius.
“Everything should be in place by the end of March 2017,” says Fenner.
He adds that it is important for every dealer to also deliver a positive sales and service experience, as Datsun’s focus cannot be solely on affordability.
With a “huge move” to the used market in the current economic climate, it is important for Datsun to continue to sell the “thrill of owning a brand-new car” to prospective buyers, says Fenner.
However, he notes that Datsun is also becoming a sought-after second-hand buy, with residual values of one-year-old vehicles at just below 80%.
Another attempt to tackle the shrinking local market is the launch of the Datsun mobility plan, which will allow buyers to pay a single monthly fee that will cover the vehicle instalment, a tracking unit, insurance, the deposit and service costs, with a guaranteed buy-back at the end of the contract.
“We are trying to reduce the fixed cost of ownership per month. We are working with the banks to make this happen. We hope to roll out the mobility plan in the current calendar year,” says Fenner.