Nissan Reveals New Strategy Designed to Gain Market Share in China

Nissan has had a keen eye on China for a while now. The appeal, of course, is that China represents the largest auto market worldwide, promising significant potential growth. And, achieving optimal growth is a critical to Nissan's recently announced Power 88 plan, which aims to grow the Japanese automaker's market share by approximately 1.8 percent in less than five years time.

..."We know we have a shortfall in terms of supply - we cannot provide as many cars as the market is demanding," explains Carlos Ghosn, CEO, Nissan. "I would say the pent-up demand on our product is above seven percent already. We want to reach 10 percent."1

Ricon Xia, Analyst, Mitsubishi UFJ Asset Management, agrees China is the place Nissan needs to be in order to achieve robust growth. "Nissan has been doing very well in China in the past few years on the popularity of models like the Tiida and Teana [not available in the U.S.]," says Ricon Xia, Analyst, Mitsubishi UFJ Asset Management. "The Chinese market will play a much more important role for Nissan in the future, as it has potential like no other."1

And, Xia is right. China will play a more critical role for Nissan, moving forward. Complementing the global Nissan Power 88 scheme, Ghosn recently revealed a new business plan targeted specifically at China. The plan commits Nissan, in cooperation with Dongfeng Motor Co., Ltd., to 70 percent increase in annual sales by 2014. That translates to over 2-million units per year! Also, in conjunction with the plan, Nissan's exclusive Chinese brand, Venucia, is slated to introduce a dedicated EV by 2015.

Stay tuned to learn more about how Nissan plans to expand their global market share. Hawkinson Nissan, located at 5513 Miller Circle Drive in the Matteson Automall, is dedicated to keeping you informed.


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