In wanting to gain more market share, Nissan has had a keen eye on China, for a while now. The Japanese automaker, however, hasn't revealed much in the way of their plan until recently. And we must say, we had no idea just how lofty the company's goals were.
A new business scheme unveiled by Carlos Ghosn, CEO, Nissan underlines a collaborative plan with Chinese ally Dongfeng Motor Co., Ltd., which outlines a 70-percent increase in annual sales within three years. In units, that translates to over two-million vehicles sold per year, by 2015.
Why is Nissan focusing so intently on China? Likely because it is the world's most substantial auto market. And, achieving optimum growth there is critical to the automaker following its Power 88 plan, which mandates the company grows global market share and profits to eight percent by fiscal year, 2016. That's an increase of roughly 1.8 percent, over a duration of less than five years.
"...We know we have a shortfall in terms of supply - we cannot provide as many cars as the market is demanding," shares Ghosn. "I would say the pent-up demand on our product today is above seven percent already. We want to reach 10 percent."1
The Nissan brand, exclusive to the Chinese market, is officially called Venucia. Nissan indicates Venucia will release their first five new models in 2012. The brand will also begin selling an EV within the next four years.
While calling Nissan's recently announced business plans aggressive might seem like an understatement. The potential for the Japanese automaker to succeed is strong. As Ricon Xia, Analyst, Mitsubishi UFJ Asset Management says, "Nissan has been doing very well in China in the past few years on the popularity of models like the Tiida and Teana. The Chinese market will play a much more important role for Nissan in the future, as it has potential like no other."2
Stay tuned to learn more about how Nissan plans to expand market share in China and worldwide. Weston Nissan, located at 3650 Weston Road in Davie, Florida, is dedicated to keeping you informed.