Nissan Announces New Mid-term Business Plan for the ASEAN region
- Targeting 15% market share with 500,000 sales in FY2016 -
Bangkok, Thailand - Nissan Motor Asia Pacific Co., Ltd. (NMAP) *1, a subsidiary of Nissan Motor Co., Ltd. (Nissan) as the newly established strategic regional headquarters of the ASEAN region, announced today a new six-year business plan, with clear objectives to achieve further growth across the region. A key highlight is the goal to more than triple sales to 500,000 units with 15% market share by the end of 2016, up from 150,000 units and 6% market share in FY2010. One of key strategies to realize this growth is the introduction of more than 10 new models during the period, as well as deep collaboration with governmental bodies to gain competitive advantages. The scope of markets for this plan includes Thailand, Indonesia, Malaysia, the Philippines and Vietnam.
This regional plan was developed to support the global direction of Nissan Power 88, the corporate mid-term plan recently announced at Nissan’s global headquarters in Japan. Nissan Power 88 aims to elevate brand and sales power, increase global market share to 8% by FY2016, and achieve a sustainable 8% operating profit as soon as possible during the period of the plan.
“As car demand in emerging markets has been rising rapidly, we foresee it will soon capture more than half of global sales volumes. ASEAN countries - including Thailand and Indonesia - are among those we have marked as our strategic growth drivers”, Toru Hasegawa, President of NMAP and Nissan Motor Thailand (NMT) said.“The new ASEAN mid-term plan is to show our strong commitment to the region, with a clear roadmap to realize Nissan’s strategic direction”, Hasegawa added.
The new ASEAN mid-term plan identifies 4 pillars to achieve its goals;
Preparing for Indonesia’s low cost green car program: Initiated by the Indonesian government, this will be a key driver to boost sales in the region.
Accelerating localization of Research and Development (R&D), as well as powertrain production: Nissan Technical Center South East Asia (NTCSEA)*2 will be expanded in Thailand and Indonesia, by tripling the number of total engineering staff from the current 120 to 370 in FY2016. In addition, JATCO Ltd, Nissan’s affiliate company, will invest 20 billion Japanese yen (250 million US dollars)*3 to establish a new manufacturing plant to produce continuously-variable transmission (CVT) units in Thailand. It will be the first company to locally produce CVTs in Thailand.
Doubling regional production capacity: From 350,000 to 700,000 units per year, this will ensure Nissan serves the growing needs of the ASEAN markets.
Establishing NMAP in Thailand: This new, strategic regional headquarters will take strong leadership to cross-functionally control the mid-term plan progress and ensure its realization.
NMT also announced today its new mid-term business plan, named “Power Up 2016”. During this 6-year plan in line with the new ASEAN mid-term plan, NMT’s product range will be increased and FY2016 market share is projected to more than double again, from 7.4% in FY2010, with extended portfolio and more than 10 model launches. To keep pace with the growing sales, dealer network will be expanded. By the end of FY2013, 50 new outlets will be added, an increase to 210 from 160 in FY2010. In addition, NMT will launch the “first eco-car sedan” in Thailand. Taking advantage of being the first manufacturer to introduce a hatchback eco-car, Nissan MARCH, NMT will again become the first manufacturer to launch a eco-car sedan and establish a solid position in the eco-car segment. This sedan is the second model of Nissan’s global compact car lineup designed to deliver stylish, high-quality, affordable, and outstanding fuel economy. Production of Nissan eco-car sedan is scheduled to start in September 2011.
Among the ASEAN countries, Indonesian total industry volume, in particular, will significantly increase through the government-initiated low cost green car program. Nissan Motor Indonesia (NMI), Nissan’s subsidiary in the country also announced its strong intention to participate in the program currently being drafted by the Indonesian government. In line with this plan to join the program, NMI will further invest in Indonesia to increase its local production, which will help develop Indonesia’s auto industry and bring significant benefits to the economy.
Nissan plans to invest 25 billion Japanese yen (312.5 million US dollars) *4 in Indonesia for further growth. The investment will mainly be for plant expansion to increase production capacity to 180,000 units by 2013 and a new engine assembly plant. Through this expansion, staffing levels are projected to increase from the current 900 employees to approximately 2,500.
These developments will also accelerate localization efforts. Nissan will be strengthening its research and development (R&D) facilities through expansion of the Nissan Technical Center South East Asia-Indonesia (NTCSEA-I). This expansion will enable the Center to better meet customer needs by offering high-quality products at the right time.
With these initiatives, NMI will strive to achieve its mid-term plan goal to achieve 90,000 unit sales in Indonesia by 2013. As for FY2011, NMI is aiming to achieve 60,000 sales and more than 7% market share.
*1 Nissan Motor Asia Pacific Co., Ltd. (NMAP): NMAP was established as a new regional headquarters on July 1st, 2011 in Bangkok, Thailand, re-organizing the current regional M&S operation at Nissan Asia Pacific Pte. Ltd. (NAP) in Singapore and Nissan Technical Center South East Asia Co., Ltd. (NTCSEA) in Thailand. It consists from key functions including Regional M&S, Product Planning, Program Management, R&D, and Monozukuri Strategy (Purchasing, Manufacturing, and Supply Chain Management).
*2 NTCSEA: Nissan Technical Center South East Asia is the R&D division of NMAP.
*3 *4 Amounts in US dollars are translated for the convenience of the reader at the foreign exchange rate of 1 Japanese yen per 0.0125 US dollars.
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