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Nissan India to have distribution centers in North and West: Output to be increased to 500,000 units

Nissan aims to capture 10% markets share of Indian auto industry by 2016. They will launch new cars, open new dealerships, and now they announce, that 2 new distribution centers, one each in North and West of India will soon come-up. Currently, Nussan has just one distribution center in India, which is located in the South (Chennai).

Nissan India to have distribution centers in North and West- Output to be increased to 500,000 unitsThese distribution centers will go a long way to ensure timely and efficient delivery of vehicles to customers, while it will also result in significant cost savings, reports The Hindu. These two centers are to be introduced in the first quarter of 2014, especially considering that Nissan has plans of introducing 10 new models by 2016. Out of these 10 models, 7 will be Nissan brands while 3 will be recently re-introduced Datsun brands.

Apart from this, Renault-Nissan plant production capacity will be increased to 500,000 units a year, while investments too will be doubled form present $2.5 billion to $5 billion by 2016. Nissan is concentrating on increased reach in India and localization of products. Introduction of new models will be followed with expansion of dealer base in the country. The company is targeting 10% market share by 2016 from a current 3% as on date. 50% of Nissan India sales are expected to come from the newly launched Datsun brand while major expansion plans are on the cards for the Nissan facility at Oragadam.

These expansion plans come at a time when automakers in India are facing severe constraints due to economic slowdown. SIAM has announced that sales have fallen 10% during the April-June 2013 quarter and the future does not seem that bright either, though automakers are banking on the upcoming festive season to see a revival in sales.

About the author

Sagar Patel

Sagar Patel

A first drive in a manual rickety old van was enough to pave the road forward for Sagar Patel. When not driving or riding, his dexterity shifts gear to voice passion through words via reviews, and news, all the while, closely monitoring updates from the auto industry.

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Your opinion matters

  • Rushikesh

    Sir, what do you think of the reaction of other players in Indian auto industry after Nissan revealed these aggressive plans?

    • sagar112

      Dear Rushikesh,

      Nissan is not only keeping an eye on India and making these investments. According to Bain & Co., the scenario is such, that by 2020, South East Asian countries will have 600 million more people added to the middle class category. These are also the one’s who will be buying their first car.

      With so many new buyers, car manufacturers need to start preparations for the future. Definitely the one’s who start early, will have benefits, but others are not sleeping.

      Nissan has made their move, and it is an aggressive one. There is no doubt that auto industry in India has a great potential. Every car manufacturer is working towards launching new cars, and increasing production capacity. They too have plans, which will be revealed with time.