Nissan Rejigs Plans To Prioritize Sustainable Growth, Profitability

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  • June 22, 2020
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The rejigged plan will shift the company’s strategy from its past focus on inflated expansion and make it even more practical based on the evolving scenario.

As part of the four-year plan, Nissan will take decisive action to transform its business by streamlining unprofitable operations and surplus facilities, alongside structural reforms. The company will also reduce fixed costs by rationalizing its production capacity, global product range and expenses. Through disciplined management, the company will prioritize and invest in business areas expected to deliver a solid recovery and sustainable growth.

By implementing the plan, Nissan aims to achieve a 5% operating profit margin and a sustainable global market share of 6% by the end of fiscal year 2023, including proportionate contributions from its 50% equity joint venture in China.

Makoto Uchida, Nissan chief executive officer, said, “Our transformation plan aims to ensure steady growth instead of excessive sales expansion. We will now concentrate on our core competencies and enhancing the quality of our business, while maintaining financial discipline and focusing on net revenue per unit to achieve profitability. This coincides with the restoration of a culture defined by “Nissan-ness” for a new era.”

The four-year plan is focused on two strategic areas, building on Nissan’s reputation for innovation, craftsmanship, customer-focus and quality, alongside an ongoing cultural transformation. The first area is rationalization. Under this the company will take robust actions to restructure, reduce costs and improve efficiency. To achieve this objective the company is look at right-sizing Nissan’s production capacity by 20 percent to 5.4 million units a year under the assumption of a standard shift operation; achieving plant utilization rate above 80 percent, making operations more profitable; rationalize global product line-up by 20 percent (from 69 to fewer than 55 models); reduce fixed costs by approximately 300 billion yen. The company also intends to close Barcelona plant in Western Europe, consolidate North American production around core models and closure of manufacturing facility in Indonesia and concentrating on Thailand plant as single production base in ASEAN. In this the alliance partners to share resources, including production, models, and technologies.

The second strategic area is in prioritizing core markets and core products. To accomplish this goal the company will focus on Nissan’s core operations in the markets of Japan, China and North America; leveraging the Alliance assets to maintain Nissan’s business at appropriate operational level in South America, ASEAN and Europe; exiting South Korea, the Datsun business in Russia and streamlining operations in some markets in ASEAN. Focus on global core model segments including enhanced C and D segment vehicles, electric vehicles, sport cars. Introduce 12 models in the next 18 months. Expand presence in EVs and electric-motor-driven cars, including e-POWER, with more than one million electrified sales units expected a year by end of FY23. In Japan, it plans to launch two more electric vehicles and four more e-POWER vehicles, thereby increasing electrification ratio to 60 percent of sales. Introduce ProPILOT advanced driver assistance system in more than 20 models in 20 markets, targeting more than 1.5 million units to be equipped with this system per year by the end of FY23.

“Nissan must deliver value for customers around the world. To do this, we must make breakthroughs in the products, technologies and markets where we are competitive. This is Nissan’s DNA. In this new era, Nissan remains people-focused, to deliver technologies for all people and to continue addressing challenges as only Nissan can, Uchida said. (MT)

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    Mahindra SUV Sales See 28% Growth In April 2025

    Mahindra

    Mumbai-based automotive major Mahindra & Mahindra has announced its wholesales for April 2025 at 84,170 vehicles, a growth of 19 percent, including exports.

    The auto major sold a total of 52,330 SUVs in the domestic market, which was 28 percent higher than 41,008 SUVs sold for the same period last year. Commercial vehicle sales in the domestic market came at 22,989 units, which was 4 percent YoY. 

    Veejay Nakra, President, Automotive Division, Mahindra & Mahindra, said, “Building on the strong momentum of last year's performance, we began the year on a strong note in April by achieving SUV sales of 52,330 units, a growth of 28 percent and total vehicle sales of 84,170 units, a 19 percent growth over the same month last year. These numbers indicate the strength of our portfolio and customer offerings.”

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      JSW MG Motor India Sells 5,829 Vehicles In April 2025

      JSW MG Motor Windsor EV

      JSW MG Motor India, a leading passenger vehicles manufacturer, has announced its wholesales for April 2025.

      The company reported sales of 5,829 units, which was 23 percent higher over April 2024, when it sold 4,725 vehicles.

      Interestingly, the automaker's popular offering, the Windsor EV, has continued to be the top-selling electric passenger vehicle for the seventh month in a row.

      JSW MG Motor India's Windsor EV has now gone home to over 20,000 customers.

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        SUVs & Exports Power Maruti Suzuki India Sales in April 2025

        Maruti Suzuki Swift

        Maruti Suzuki India, the country’s largest carmaker, has reported its wholesales of 179,791 units in April 2025, marking a 7 percent increase compared to 168,089 units sold in April 2024. The growth was primarily propelled by strong performance in utility vehicles and a sharp rise in export volumes.

        Domestic sales, including passenger and light commercial vehicles, remained flat with 142,053 units, as compared to 140,448 units in April 2024. Within this, light commercial vehicles (LCVs) like the Super Carry saw a significant jump of 34.2 percent, with sales rising to 3,349 units from 2,496 units last year.

        In the passenger vehicle segment, SUVs such as the Brezza, Ertiga, Grand Vitara and others recorded a 4.4 percent increase, selling 59,022 units compared to 56,553 in the previous year. However, sales for Eeco declined by 5.2 percent, while the mini segment (Alto, S-Presso) saw a sharp 45 percent drop, falling to 6,332 units from 11,519 units. The compact segment, which includes high-volume models like the Baleno and Swift, grew by 8.1 percent, reaching 61,591 units.

        Sales to Toyota Kirloskar Motor rose sharply by 79.2 percent, from 5,481 units to 9,827 units, indicating a growing demand for cross-badged products.

        The standout performer was the export segment, which surged 26 percent to 27,911 units from 22,160 units in April 2024. This strong export growth helped bolster the company’s overall numbers despite weaknesses in domestic sub-segments.

        While some product lines such as the mid-size sedan Ciaz (-63 percent) continue to struggle.

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          Tata Motors Reports 72,753 Units Sold in April 2025; PV and CV Segments Show Decline

          Tata Motors

          Tata Motors reported total wholesales of 72,753 units for April 2025, reflecting a 6 percent year-on-year decline from 77,521 units in April 2024.

          The passenger vehicle (PV) segment, including electric vehicles, accounted for 45,532 units, down 5 percent from 47,983 units in the same month last year. Within this, domestic PV sales dropped 6 percent to 45,199 units, while international business (IB) sales rose significantly to 333 units, up from 100 units. Electric vehicle sales (domestic + IB) declined 16 percent year-on-year to 5,318 units.

          Commercial vehicle (CV) sales stood at 27,221 units, marking an 8 percent YoY drop from 29,538 units in April 2024. Domestic CV sales contracted 10 percent to 25,764 units, while CV exports (IB) grew 43 percent to 1,457 units. Key sub-segments like Small Commercial Vehicles (SCV) and pickups saw a steep 23 percent decline.

          Despite growth in certain categories like ILMCV trucks and passenger carriers, overall sales momentum was tempered across both PV and CV segments.

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