Nissan plans Rs 2.5 lakh car

Here are some of the important updates on Nissan, coming in directly from Geneva.

Nissan plans US$ 5000 car with Ashok Leyland
Nissan has revealed that it is seriously studying the feasibility of a US$ 5000 car (approximately Rs. 2.5 lakh) for markets like China and India. "We believe there is huge potential for a car in the gap between the ultra-low cost car that Bajaj is developing and the Nissan Micra" said Colin Dodge, Executive Vice-President,  Nissan Motor Company.

Colin Dodge also indicated that the US$ 5000 may be developed with Indian partner Ashok Leyland. "Our relationship with Ashok Leyland is growing and we believe there is an opportunity to develop a price entry vehicle with them" he confirmed.

Nissan feels that India with its unique low cost base and frugal engineering skills is well placed to develop such a car. "In Europe or Japan engineers can no longer go back to basics and they have lost the ability to engineer products that meet the low end of the market. Indian engineers challenge everything from a cost point of view" said Dodge. 
 

80 percent of Micra production for Export
Nissan plans to produce 70,000 Micras in the first full year of production of which 80 percent will be exported with the balance 20 percent for the domestic market. "That figure could come become 60:40 depending on the demand for the Micra in the Indian market" said Colin Dodge, Executive Vice president, Nissan Motor Company. Nissan has set up an initial capacity of 2,00,000 units per annum in its Tamil Nadu plant and this figure could be doubled if there is sufficient demand. The saloon version of the Micra is expected in late 2011 and an MPV is planned on the same platform as well.

Nissan won't enter price war with Micra
Nissan has stated that it will not lead a price war in the hatchback market in India which is seeing rivals undercut each other on price. "There are some strange things going on in India with some companies entering into a price war. I can tell you that's not the road we want to go down. We won't sell our Micra cheap and if that is not accepted in India then we will ship them to some other market where people are willing to pay for them, said Colin Dodge, Executive Vice President, Nissan Motor Company.

Also read news story on Nissan Micra launch.