Nissan Motor Co. plans to build a car costing U.S. $ 3,000 or approximately Rp 30 million in India. Apparently, this car is made to compete with the Tata Nano. Nissan said the car was ready to be released to cheaper markets in 2012.
Africa Region Vice President of Nissan, the Middle East, and Africa, Gilles Normand, said car plan is to take advantage of cheap Indian expertise in lower production costs, as well as the Tata Nano.
Nissan has been discussing this project with Bajaj Auto and Renault. Giles said in their talks with Bajaj Auto Ltd. Bajaj it did find that the margins on three wheels is greater than the margin which Nissan currently sells four-wheeled vehicle. Nissan's operating margin in India is about 4%, while Bajaj Auto margin reached 10.5% in 2009.
This cheap car Nissan predicted will help improve the profitability of the company for taking advantage of Bajaj expertise in low-cost production techniques. Giles also said that a large number of cars sold in the Indian market is a car at a price below U.S. $ 8,000 or below Rp 80 million.
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