Copyright FOURIN, Inc. 2023
Nissan Motor’s Recent Business Trends in Asia
Nissan Motor is strengthening its business activities in India as a new base for the development, production, and export of electric vehicles in Asia. In February 2023, Nissan announced that it would strengthen its development and production in India through an alliance with Renault. The enhancement involves investing 600 million USD into Nissan and Renault’s business bases in Chennai over the next three to five years. The company will develop and produce a total of six new models, including C-segment SUVs and two A-segment BEVs. All models will be manufactured locally by Renault Nissan Automotive India’s Oragadam Plant. The first of the six new models is scheduled to be launched in 2025. This will be Nissan’s first initiative to deploy BEVs in India. The company stated that “this investment is just the start,” and that it will consider additional investments depending on future demand trends. Until now, Nissan’s Asian business has centered on Thailand as a production and export hub, but depending on the company’s performance in India, a two-axis system may be realized. The company also plans to strengthen exports and has also indicated its intention to use the Kamarajar Port in Chennai as an export hub.
Trends in other countries include the reintroduction of the Terra SUV in Indonesia in March 2023, and the reduction in the price of the Leaf BEV, which was exempted from tariffs by the government, in the Philippines. In Thailand, Nissan has announced that sales volume in 2023 is expected to double compared to the previous year.
In its FY Q1 2023 financial statement, released in July 2023, Nissan said that although there are concerns about an economic slowdown in the Asian region for the full year, it views sales volume positively. Although the Asia region is not currently a core market of Nissan, it is believed to be gaining importance as a region to compensate for the decline in production and sales in China.