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For next small car, Nissan gets inputs from Alto buyers

Nissan, which is gearing up for the commercial launch of the Micra next Wednesday, is simultaneously preparing the groundwork for its next small car being planned jointly with Ashok Leyland.

Even though the project is still in the concept stage, sources said small teams from Nissan have been talking to owners of the Maruti Alto to find out what draws them to the car. The Alto is the largest selling small car in the B-segment with monthly numbers of around 25,000 units.

“The Nissan team has been collating feedback on owners’ experience with the Alto, while checking out what additional features they would like in a similar product,” a person who was involved in the exercise told Business Line.

The B-segment typically kicks off with an ex-showroom (Mumbai) price of Rs 3-lakh and it is here that Nissan has planned its next small car. Ashok Leyland will be its partner if everything goes according to plan. The duo is now gearing up to launch light commercial vehicles from two plants in Chennai and Hosur.

The Alto was launched some years ago to give owners of the Maruti 800 the next best alternative to an entry-level car. In the process, its sales have soared while the 800 is barely doing around 2,500 units a month. The Alto has also struck the balance comfortably between urban and semi-urban markets from the viewpoint of being an aspiration product.

Critical segments

Nissan is, therefore, zeroing in on a strategy which will see it present in critical segments in India that will continue to be growth drivers in the coming years. The Micra, expected to be priced in the Rs 4-5.5 lakh range, will be part of the B plus category and will compete with the likes of the Swift, Figo and Polo.

Incidentally, the Micra is part of the Nissan Motor India stable (which is also tipped to roll out a sedan and sport-utility vehicle in two-three years) and the next small car will be specific to the alliance with Ashok Leyland. It will be priced in the Rs 3-lakh range which will pitch it directly against the Alto, Santro, Indica etc.

Renault strategy

Nissan’s global ally, Renault, is also following a similar strategy for its small car which will begin with an offering in the B plus and then go down to the B segment. The fact that the cars will be part of the Nissan V-platform in Chennai will mean tremendous savings in costs and a competitive price in the process.

Further down the cost pyramid, the Renault-Nissan combine is in talks with Bajaj Auto for an ultra-low cost car that is expected to be priced upwards of Rs 1.5 lakh. It has been touted as the challenger to the Tata Nano though the project will focus on high mileage (of at least 30 km to a litre) so that two-wheeler riders will have a good reason to graduate to a car.

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