Datsun cars to be sold through Nissan India dealerships

Last week, Nissan unveiled the first car under the recently resurrected car brand, Datsun, in the form of the GO hatchback. The Datsun brand will be used to market low cost cars that Nissan is developing for emerging markets across the globe. Now, official word about Datsun sharing showroom space in Nissan India dealerships has emerged. Mr. Vincent Cobee, the global head of Datsun, speaking to the EconomicTimes, has announced that cars under the Datsun brand will be sold through Nissan dealerships in India.

Although Datsun cars will be sold and serviced through Nissan India's dealership and service network respectively, the cars will have their distinct space within Nissan showrooms. Also, the sales personnel handling Datsun cars will be distinct from those handling Nissan cars. This demarcation will apply to the after sales service aspect too. Notably, Nissan's approach with brand Datsun in India, is similar to what Mahindra is following with the Ssangyong range in India. 

Mahindra dealerships sell the Ssangyong Rexton SUV, which gets independent sales and service personnel. Eventually, Datsun cars are expected to be sold through independent dealerships in India, with existing Nissan dealers having the first right of refusal to set up Datsun dealerships. Presently, Nissan's distribution network in India is handled by an independent channel partner, Hover Automotive. In the past, many Nissan dealers have lodged their protest against Hover Automotive.

This had led to a confrontation between Nissan dealers and Hover Automotive last year, which has since been resolved with the intervention of the Japanese car maker. Currently, Nissan has 92 dealerships across India. However, for a big-volume small car like the Datsun GO, which competes with the likes of the Hyundai i10 and the Maruti WagonR, the number of dealerships would have to be greatly expanded if Nissan intends to reach out to more buyers. 

Small car purchases in India, in the budget end of the spectrum, are largely dictated by accessible dealership and service networks. Both Maruti Suzuki and Hyundai, the country's top two small car sellers have an extensive presence across both urban and rural parts of India, with the former having the largest number of touch points of any car brand operating in the country. Likewise, Nissan would have to rapidly expand the number of dealerships and touch points to give the Datsun range of cars a solid footing in India. 

After the Datsun GO hatchback, which will be slotted between 3-4 lakh rupees, Nissan will launch the i2 hatchback. The Datsun i2 is a smaller hatchback that will be pitted against the likes of the Maruti Alto 800 and the Hyundai Eon. The Datsun i2 is expected to be powered by a new 800cc-3 cylinder petrol engine (code-named the BR03), currently under development in the Renault-Nissan Technical Center at Chennai. The Datsun i2 is expected to be priced well under 3 lakh rupees, with a 2015 launch timeline likely.

All Datsun cars will be developed and manufactured in India, with a high amount of localization. The high localization will allow Nissan to price the Datsun cars competitively, while also allowing long term service costs to be maintained at affordable levels. The Oragadam joint manufacturing facility of Renault-Nissan will be expanded to handle the production of the Datsun range of small cars.