The introduction of the Datsun brand in India seems to have been a success stroke for Nissan as 50% of its Indian sales are coming from Datsun. Nissan plans to keep both its brands mutually exclusive in India, with no cross competitive product launches between the two brands.
The Datsun brand from Nissan is quite famous worldwide for producing practical, economical cars which are cheap to maintain and run. In 2013, the brand was launched in India by Nissan, with an aim to provide a major sales boost and it did just that. 50% of Nissan’s present sales in India are coming from the Datsun brand. With the launch of its entry level hatch, the redi-GO, that number will only increase.
Nissan’s strategy seems to have played out exactly as per their plan. The decision to introduce the Datsun brand in a market like India, where practicality and economy rate higher on the consumer’s lists than any other factor, seemed like a no-brainer. Datsun first entered the market with its GO, which came as a no nonsense, economical hatchback and went up against the Maruti Suzuki Alto K10. Though initial response wasn’t particularly positive, the Datsun name has started gaining popularity.
Meanwhile Nissan has maintained its presence at the premium end of the market with the Terrano, Sunny and the Teana. With the two pronged approach, Nissan seems to have a car for every segment. It can also be seen that the company is taking care of the fact that none of its products overlap each other. Product overlaps can cause cannibalistic competition which will eat into the company’s profits.
Thus, Nissan will maintain a clear product hierarchy for all of its products for the future, as Datsun will primarily focus on the mass market high volume segment of small hatchbacks and maybe compact sedans, while Nissan will be launching their cars in the premium and luxury segments.
50% Of Nissan India Sales Coming From Datsun
– The Datsun brand is responsible for 50% of Nissan India’s sales
– Datsun will be concentrating on small mass market cars
– Nissan on the other hand will be present in the premium markets for SUVs and luxury sedans
– The Company will maintain a clear brand distinction so as to prevent cannibalistic competition
