Nissan Micra to be replaced by a new car in 2016
Japanese automakers, Nissan Motor Co will replace their Micra small car in India by a new car. Coming into markets sometime in 2016, this new development has been confirmed by Andy Palmer, Chief Planning Officer, and Executive VP, Nissan.
Nissan had earlier in 2010 moved production of Micra from its plant in Sunderland, England to Chennai, India so as to free up capacity for the production of the new Juke sub-compact crossover and to offer India a locally made Micra. But the Micra failed to live up to expectations in India. Even after pricing Micra competitively and launching the facelift, there hasn’t been much change in sales. Now, Nissan has decided to offer a completely new car instead of Micra in India. No name of the upcoming replacement for the Micra in India has been revealed.
The other reason for shifting out Micra productin from India could be production constraints. The Nissan Renault alliance have a joint plant in Oragadam, Chennai into which the companies have invested around INR 4,000 crores. This plant serves both domestic markets and as an export hub and has an installed capacity of around 4.8 lakh units. In 2013-14 around 3 lakh units were produced out of which 1.6 lakhs were exported thus making them the second largest exporter of cars from India. With new products coming up, the capacities of Chennai plant will have reached its limit and hence the decision to shift out production of Micra.
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