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Nissan Africa, Middle East and India (AMI) appears set to transform the immense opportunities in the region to reality as it announced, Monday, a comprehensive four-year strategy for the region under the company’s Global Transformation Plan.
The AMI business plan, according to the announcement, aligns with the global direction of rationalisation, prioritisation and focus to bring core models and technologies to a region that accounts for around 10 per cent of the world automotive market.
The company said it will build on Nissan’s existing strengths in the region, including continued growth in key markets and strong brand presence, maximising synergies with Alliance partners and leveraging an expansive and competitive manufacturing presence in South Africa, Egypt, India and Nigeria.
Nissan Chief Operating Officer, Ashwani Gupta, while unveiling the plan, said: “Africa, Middle East and India is an important region where we will target investment in existing strengths, including SUV, and bring eight new products to the market.”
Gupta added that, “By driving efficiencies through the Alliance and focusing on core competencies, we will further increase the region’s profitability, especially in key markets including the Gulf, South Africa and Egypt.”
Chairman of the Africa, Middle East and India region, Guillaume Cartier, who appreciated the region for its immense opportunities, said: “The AMI region has enormous potential with some of the most dynamic and diverse automotive markets in the world.”
According to Cartier, “Nissan has already established a strong foundation for sustained growth with high brand equity, a deeply embedded heritage of Nissan DNA and culture and a long history of dedicated and experienced business partners in retail and manufacturing.”
He assured that “Through the mid-term, we will remain focused on driving value for the business by meeting the needs of our customers across the region.”
AMI said it will follow the global transformation strategy, announced last month by Chief Executive Officer, Makoto Uchida, which aims to achieve sustainable growth, financial stability and profitability by the end of fiscal-year 2023.
In line with Nissan’s global plan, the AMI strategy is developed around two strategic areas of ‘rationalisation’ and ‘prioritisation and focus’:-
1) Rationalise: actions to improve regional cost and efficiency:-
- Optimise the regional product portfolio by 20 per cent
- Further increase the cost competitiveness of local plants
- Seek and enhance export opportunities from AMI plants
- Leverage additional opportunities to reduce Fixed Cost
2) Prioritise and Focus: actions to build on key strengths in products, markets and technology:-
Product:
- Introduce eight new models
- By market, focus on core models and segments to channel investment to most profitable products
- Regional priority on Sports Utility Vehicles (SUV) and affordable sedan models (B-sedan segment)
Market:
- Continue building on existing strengths in key markets including GCC, Saudi Arabia and Egypt
- Fully realise the opportunity of Africa and Turkey as high potential markets
- Launch local models including Navara in South Africa and B-SUV in India
Technology:
- Phased regional deployment of Nissan Intelligent Mobility including e-POWER, EV and Connected technologies
- Increase Digitalisation and enhancement of the Customer Experience
AMI said it will also leverage the new Alliance global cooperation model in which all partners (Groupe Renault, Nissan Motor Co., Ltd. and Mitsubishi Motors Corporation) will deepen synergies to support the competitiveness and profitability of member companies.
In AMI, the Alliance ‘leader-follower’ approach will enhance efficiency and competitiveness in products and technologies including common platforms and advanced technology, while there will be additional benefits through shared procured services including IS/IT and distribution.
The global ‘reference region’ scheme will also apply, with Alliance partners focusing on core regions to act as a reference for the other members. In AMI, Nissan will be the reference in the Middle East, South Africa and Egypt; Renault in Turkey and North Africa (excluding Egypt); with joint status in India.
Cartier added: “Today, AMI is a region with opportunity for significant growth. Over the next four years we will transform opportunity to reality by bringing the right products, services and technologies to deliver lasting positive change for the business, our partners and customers.”
