Japanese auto giant Nissan Motor on Monday said it would aim to achieve a global market share of eight per cent by the end of fiscal 2016 as it unveiled a six-year business plan. Nissan, which is 44.3 per cent owned by French partner Renault, also said it aimed to lift its operating profit margin to eight per cent in that period under its “Nissan Power 88” growth plan. “We are definitely on the offensive,” company President and CEO Carlos Ghosn told reporters.
Japan’s second-biggest auto maker by volume, after Toyota, had a 5.8 per cent global market share last year. The plan will see the Nissan-Renault alliance aim for cumulative electric vehicle sales of 1.5 million units in that time. Last year Nissan began selling its all-electric car “Leaf” in Japan, the United States and parts of Europe.
It said it would also aim for a 10 per cent share of the Chinese market while boosting its presence in economies such as India and Brazil, where it will build a new factory producing 200,000 vehicles per year.
Nissan currently has a 6.2 per cent market share in China. “In 2012, we will have nearly doubled our production capacity to 1.2 million units,” in China, Ghosn said. In Russia, Nissan and its partner Renault are in talks to take a more than 50 percent stake in major Russian auto maker AvtoVAZ. Yokohama-based Nissan will continue to focus on zero-emission vehicles and low-emission technologies while also aiming for a 10 per cent share of the global luxury market with its Infiniti brand.
Nissan aims to expand its sale network to 7,500 major points of sale globally from the current 6,000. The automaker last week said annual net profit this fiscal year will fall 15 per cent year-on-year after Japan’s 11 March earthquake hit output, while it also struggles with high raw material costs and a strong yen.
But despite lower profits, it expects global sales to rise 9.9 per cent in the year to a record 4.6 million units, with full production returning in October this year. The 9.0-magnitude quake and tsunami destroyed entire towns, left 23,000 dead or missing and crippled electricity-generating facilities, including a nuclear power plant at the centre of an ongoing atomic crisis. Japanese firms were hit hard by shortage of power and parts, with the likes of Nissan, Toyota and Honda having to sharply cut production and shut plants. Nissan shares closed up 0.11 per cent at 845 yen ahead of the announcement.
