Nissan announces new four-year strategy for India, Africa and Middle East

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Nissan announces new four-year strategy for India, Africa and Middle East
Nissan will bring a new B-SUV to the Indian market, most likely to be called 'Magnite'. (Image: Nissan)

Nissan Africa, Middle East and India (AMI) have unveiled a new four-year strategy for the region under the company’s ‘Global Transformation Plan’. As a part of this new plan, the company will build on Nissan’s existing strengths in the region including continued growth in key markets and strong brand presence, maximising synergies with Alliance partners and leveraging an expansive and competitive manufacturing presence in South Africa, Egypt, India and Nigeria.

Nissan Chief Operating Officer, Ashwani Gupta, said, “Africa, Middle East and India is an important region where we will target investment in existing strengths, including SUV, and bring eight new products to the market. By driving efficiencies through the Alliance and focusing on core competencies, we will further increase the region’s profitability, especially in key markets including the Gulf, South Africa and Egypt.”

Chairman of Africa, Middle East and India region, Guillaume Cartier, commented, “The AMI region has enormous potential with some of the most dynamic and diverse automotive markets in the world.”

“Nissan has already established a strong foundation for sustained growth with high brand equity, a deeply embedded heritage of Nissan DNA and culture and a long history of dedicated and experienced business partners in retail and manufacturing.”

“Through the mid-term, we will remain focused on driving value for the business by meeting the needs of our customers across the region.”

AMI will follow the global transformation strategy, announced last month by Chief Executive Officer, Makoto Uchida, which aims to achieve sustainable growth, financial stability and profitability by the end of the fiscal year 2023.

In line with Nissan’s global plan, the AMI strategy is developed around two strategic areas of ‘rationalization’ and ‘prioritization and focus’:-

1) Rationalize – actions to improve regional cost and efficiency:-

  • Optimise the regional product portfolio by 20 percent
  • Increase the cost competitiveness of local plants
  • Seek and enhance export opportunities from AMI plants
  • Leverage additional opportunities to reduce Fixed Cost

2) Prioritize & Focus: actions to build on key strengths in products, markets and technology:-

Product:

  • Introduce 8 new models
  • By market, focus on core models and segments to channel investment to most profitable products
  • Regional priority on Sports Utility Vehicles (SUV) and affordable sedan models (B-sedan segment)

Market:

  • Continue building on existing strengths in key markets including GCC, Saudi Arabia and Egypt
  • Fully realize the opportunity of Africa and Turkey as high potential markets
  • Launch local models including Navara in South Africa and B-SUV in India

Technology:

  • Phased regional deployment of Nissan Intelligent Mobility including e-POWER, EV and Connected technologies
  • Increase digitalization and enhancement of the customer experience

AMI will leverage the new Alliance global cooperation model in which all partners (Groupe Renault, Nissan Motor Co., Ltd. and Mitsubishi Motors Corporation) will deepen synergies to support the competitiveness and profitability of member companies.

Furthermore, in AMI, the Alliance ‘leader-follower’ approach will enhance efficiency and competitiveness in products and technologies including common platforms and advanced technology, while there will be additional benefits through shared procured services including IS/IT and distribution.

The global ‘reference region’ scheme will also apply, with Alliance partners focusing on core regions to act as a reference for the other members. In AMI, Nissan will be the reference in the Middle East, South Africa and Egypt; Renault in Turkey and North Africa (excluding Egypt); with joint status in India.