Nissan announces Africa, Middle East and India expansion plans

13th June 2018 By: Nadine James - Creamer Media Writer

Nissan on Wednesday unveiled a major expansion strategy in the Africa, the Middle East and India region as part of the company’s six-year midterm plan.

The automotive manufacturer aims to build on its strengths and “solid profit margins” in markets including South Africa, India, the United Arab Emirates, Egypt and other parts of sub-Saharan Africa.

Further, Nissan intends to develop strong partnerships and use local talent to meet growing vehicle demand, with industrywide sales for the region expected to increase by about 40% to around 12-million vehicles a year by 2022.

The company aims to increase its market share in Turkey, Saudi Arabia and India; expand industrial operations into new “frontier” markets, by building on a solid presence in Pakistan and Nigeria; and extend Nissan Intelligent Mobility products and services in electrification, autonomous driving systems and connectivity.

Nissan also intends to accelerate the Datsun brand’s presence in new and existing markets.

Nissan Africa, Middle East and India chairperson Peyman Kargar commented that Nissan’s “ambitious” plans reflect the exciting opportunities ahead.

“Nissan has already developed a strong presence within this fast-growing region and we are well-positioned to maximise our growth and make an increasing and lasting contribution to Nissan’s overall performance.”

The regional expansion is the latest announcement of the midterm plan, launched last year. The plan calls for achieving sustainable growth while leading the automotive industry’s technology and business evolution.

Globally, Nissan is targeting yearly revenue of 16.5-trillion yen and an 8% core consolidated operating profit margin by the end of the 2022 fiscal year.

Nissan will expand into new frontier markets where few carmakers are present. This follows the March announcement that Nissan is entering Pakistan through a manufacturing and licensing agreement with its partner Ghandhara Nissan. The initiative to build Datsun models will create more than 1 800 jobs. Nissan will enter additional high-potential markets over the course of the plan.

In the Middle East, Nissan will add new models to key segments, building on the 2017 financial year sales of 96 600 vehicles. The plan calls for boosting Nissan’s current market share of 16% in the Gulf States to 20% by the end of the 2022 financial year.

In Saudi Arabia, market share is expected to double from 7% to 14% by the end of the plan.

Other market initiatives will include growth in the fleet segment and improved dealership facilities. The company will also show Nissan Intelligent Mobility technologies at Expo 2020 Dubai as it prepares to offer electrified models in the region.

AFRICA

Nissan plans to increase its market share in South Africa, which is currently at 10%, substantially over the course of the plan. The company’s sales in South Africa rose by 26% to 53 400 vehicles in the 2017 financial year.

The introduction of new models, including the new Nissan Micra, is expected to boost demand.

Nissan is also working to build on its position in Egypt, where it is the only manufacturer with its own plant, and on the company’s first-mover success in Nigeria, where Nissan vehicles are assembled with a partner.

Nissan is studying further manufacturing opportunities in sub-Saharan Africa.

INDIA

In India, the company will strengthen its dealership network and boost the Datsun and Nissan brands through initiatives including sponsorship of the International Cricket Council.

Nissan has a strong foundation for growth in India with a 480 000 vehicle capacity plant, as well as a large research and development centre, which was established with its Alliance partner, Renault. Both facilities are located in Chennai.