Nissan will invade the low-cost car market
Nissan Motor Co., Japan’s third-largest automaker, is designing a $2,500 car to compete in India with Tata Motors Ltd’s planned low-cost model, Chief Executive Carlos Ghosn said. “We’re working on how we can make a car for $2,500,” Ghosn told reporters at a dinner in Versailles, France. A Nissan advanced engineering group is carrying out the study, he added.
Automakers are moving quickly to follow in Renault SA’s footsteps by offering cheaper models for fast-growing markets in Asia, the Middle East and South America. France’s second-largest automaker, which owns 44 percent of Nissan, will launch its low-cost Logan sedan in Argentina, Brazil, India and Iran. Ghosn heads both Renault and Nissan. Tata, India’s third-largest automaker, plans to sell a car priced around $2,500 by 2008.
According to government estimates, the Indian car market could triple to 3 million vehicles a year by 2015. “In India, a competitor has advertised a car for next year at $2,500,” Ghosn said. “I take that challenge very seriously.” He had already said in April that the company intends to sell cars in India for less than $3,000.
The Japanese automaker is seeking to win business from auto rivals including Suzuki Motor Corp, whose Maruti Udyog Ltd unit controls a 50 percent market share in India. Nissan Motor India Private, Ltd also contributes to social activities with all employees. The company distributes uniforms and stationery to schools affected by the recent floods in Mumbai.
“If you ask any automaker if you can make money on a car that costs $2,500, the answer will always be no,” Ghosn said. “Until someone does.” The Tokyo-based automaker said on April 26 that its profit fell 46 percent to 82.2bn yen in the quarter ended March 31 due to weak US sales.
In connection with Nissan’s struggle to ease its sales, it will introduce its next-gen Maxima, which is said to be a true 4DSC (short for 4-Door Sports Car). The new vehicle is not only equipped with the peculiar Nissan clutch master cylinder. This is because the automaker’s engineering group has made the new Maxima more mature and luxurious.
A Nissan insider described the new vehicle as “unlike anything we’ve done before”. The new Maxima will be more aggressive than ever and will flaunt a coupe-like shape, similar to the Mercedes-Benz CLS. The car will also slot in from the Z and the upcoming GT-R to strengthen ties to high-performance machines. In addition to the legendary VQ series engine, the new Maxima will also feature Nissan’s new Alliance turbodiesel engine.
The automaker ships the new Maxima with high hopes. Its amazing performance and affordable price could get you going again. The bolder, higher-performance Nissan Altima is coming in 2009.
Nissan will also launch the 2007 model year 350Z in Australia. The vehicle is equipped with a more powerful next-generation engine, revised exterior styling and a new exterior color palette. At the heart of the 2007 model year 350Z is Nissan’s award-winning next-generation engine, designated VQ35HR.
Nissan Australia Managing Director and Chief Executive Shinya Hannya commented on the company’s halo model update to the range: “The changes are designed not only to improve the performance of the 350Z, but also to build its reputation as one of the our best high-performance sports cars”.
Separately, the Japanese automaker is pleased to announce that its hybrid can continue to claim the Alternative Motor Vehicle Credit. This fact is attested by the Internal Revenue Service. The announcement came after the IRS concluded its quarterly review of the number of hybrid vehicles sold.
For your consideration, Nissan sold 2,094 qualifying vehicles to retail dealers in the quarter ending March 31, 2007. The allowable credit amount for the 2007 Altima Hybrid, the automaker’s only certified hybrid vehicle, is $2,350. Taxpayers will be able to claim the full amount of the allowable credit through the end of the first calendar quarter following the quarter in which the manufacturer records the sale of the 60,000th vehicle.