Reference Auto

Nissan, which is yet to become a major player in the car market of the country, could see its fortunes (read profit and market share) change for the better after it brings in the Datsun after three decades (the latest K2 model this time) into India as well as to upcoming markets like Russia, Indonesia and South Africa.

The first Datsun hatchback is expected to hit Indian roads in mid-2014 with a base price of Rs 3.2 lakh (approx) and the car would be sold through Nissan dealerships. The new car would have some mind blowing acceleration as well as fuel efficiency, according to the auto major.

The new Datsun brand would be showcased at the Kingdom of Dreams in New Delhi around mid-July. 

Global CEO of Renault-Nissan Carlos Ghosn is likely to unveil the first Datsun model, which will be a five-door hatchback in the sub Rs 4-lakh category and vie with the likes of Chevrolet Spark, Maruti Suzuki Alto and Hyundai Eon, among others. 

The car, called K2 as of now, comes with the same 1.2-litre, three-cylinder petrol engine (XH5) from the Micra. In the Micra, this engine develops 75 bhp but this could be a tad less in the K2, which is set to be tuned for better efficiency.

This is a big step (bringing in a compact car) by Nissan and entry into the small and compact hatchback market, which sees the highest sales in the auto sector, could turn out to be a game changer.

And, the fight would mainly be on the price front here. Budget cars with some features like body colour bumpers, power steering and, of course, air conditioner, are the basic requirements for buyers in the category. If these are met, then a car sells well. 

Nissan expects to sell around 1.5 lakh to 2 lakh Datsun cars in India annually by promoting the Datsun as affordable and feature-rich car.

Nissan feels that the Datsun brand – which has been targeted at the emerging middle class market of India, Russia and Indonesia – will play a key role in ‘Nissan Power 88’, where the auto company is aiming to jack up both profits and market share globally and an affordable car could provide a welcome relief.

But Nissan may take quite a while to make Datsun among the leaders in the compact car pack, where the Alto is miles ahead. Unless Nissan uses some earth shattering marketing strategy (like giving huge discounts), Datsun is unlikely to top the charts even in the medium term.

So, Nissan may see a big surge in profit and market share if it comes out with schemes like mega discounts for the Datsun K2, among others, and this may help in catapulting Nissan to the top three in the compact car segment.