Nissan Motor has shed its much hope on its $3000 cars in the Indian market. The company has entered into a JV along with Bajaj and Renault for making small cars in India. Nissan feels that Bajaj enjoys more profit through its three wheelers than Nissan could do with its cars. Nissan foresees an operating margin of 4% till March 31 2010 against Bajaj’s 10.5% in the same period of 2009. Bajaj is yet to spell its target for this fiscal.
Nissan aims to penetrate the Indian market with its low cost car in 2012 to counter Tata’s Nano. To attain this, the company is tracing the low cost concept and exprtise of Indian technology. The cars in the Indian market have more than 50% of the ones priced below $8000. Nissan is too critical to compare with Bajaj, that the latter enjoys much profit from the three wheelers. It is to be seen the value of Bajaj’s technical acumen applying for four wheelers. Bajaj and Nissan are to sit and set out strategies for arriving at the cost and sharing of platforms for four wheelers.