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).
These 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.