Nissan plans small car assault

Nissan is planning a massive assault on the huge compact car market in India with two all-new models that will sit below the Micra in the Japanese company’s model range.

The first model (code: K2) will be built on a two-generation old Micra platform (code: K11) but will get a new ‘top-hat’ or all new body and interiors. The K2 which is due for launch in December 2012 is aimed at the Wagon R and A-star and will be priced competitively at around Rs 3.5 lakh. Engine options are likely to be the same 1.2 litre three-cylinder petrol motor that powers the Micra although a highly fuel-efficient 1-litre engine is also being considered.

The K2 will come with two wheelbases; the longer version will be for export markets. Nissan is also considering an MPV version of the K2 to cater to the Indonesian market where this body style is extremely popular. According to sources in Nissan, using the defunct K11 platform has resulted in savings of around Rs. 50,000 and critical to meeting the stiff target price.

Even more ambitious is the cheaper entry level hatchback (code: I2) that Nissan is developing to compete head on with the Alto. The I2 is being developed by Defiance Testing and Engineering, a US company acquired in 2007 by Ashok Leyland, Nissan’s joint-venture partner in India. Ashok Leyland will take the lead in developing the I2 and to keep costs down a significant amount of engineering work will be carried out in India. Nissan hopes to sell the I2 for around Rs 2.5 lakh and tap into the massive volumes the Alto is currently enjoying. The I2 is likely to be launched in 2013.

Nissan also has the option to use Bajaj’s ultra-low cost car (ULC) though it’s not clear if the ULC will form a part of Nissan’s India range. However, with the Micra, K2 and I2, Nissan will have completely covered the budget end of the Indian car market and could pose a formidable challenge to Maruti’s stranglehold.