Nissan CEO Carlos Ghosn Expects Auto Sales in Emerging Markets to Rebound in 2014 image

Japanese Automaker Nissan Motor is confident that auto sales will begin to rebound in several emerging markets in 2014.

Nissan CEO Carlos Ghosn said that the drop in demand in India, Russia and Brazil is only a short-term adjustment and that sales will increase again in 2014. Automakers in India are dealing with the first annual decrease in passenger vehicle sales in more than 10 years, as demand is affected by an economic slowdown.

Auto sales in Brazil have fallen for the third straight month in August and sales in the Russian market have dropped for six consecutive months. Ghosn sees Brazil and India as markets with long-term potential due to the low ownership of vehicles per capita.

“Even though the situation is a little bit tough in some of the high growth markets we don’t think it is going to last,” said Ghosn. When you see that in Portugal you have 500 cars per 1,000 residents, or 200 cars per 1,000 residents in Brazil or 300 per 1,000 residents in Russia or less than 50 cars per 1,000 residents in India, you know that the trend is up.”

At the beginning of this week Nissan introduced the Datsun Go and Go+ models in Indonesia and plans to begin selling the brand’s vehicles in Russia, India and South Africa in 2014, part of its plan to expand in emerging markets, aiming at first-time buyers.

Source: Bloomberg