Nissan plans to launch under Rs. 5 lakh car

Nissan looking to introduce more small cars in the sub Rs 5 lakh range. The Japanese carmaker Nissan Motor which is also an alliance partner with French car maker Renault which had remained a fringe player in Indian market, now wants to come into the forefront and become a volumes player eyeing for a large share of the automarket.

 Nissan is looking to make greater inroads into the booming small car market by driving in cheaper models.

Nissan may launch a compact car on the K2 platform by 2013-14 and price it at Rs 3-4 lakh. This will be followed by an even cheaper compact car, which is being designed by Hinduja Group’s engineering arm Defiance and is likely to be priced at Rs 2-3 lakh. If the company’s talks with Bajaj Auto fructify, Nissan will be able to launch three to four compact cars within three to five years.

 While competition is hotting up in the premium hatchback category as well, the sub-Rs 5 lakh category accounts for 40 percent to 45 percent of the small car market. By 2013, Nissan plans to launch at least one vehicle a year in every segment – small cars, SUV, MPV, luxury cars over the recently launched sedan Sunny, mentioned in the report.