Nissan ready to introduce resurrected Datsun brand to the Russian market image

Japan’s Nissan Motor Co will unveil the Datsun brand in Russia next April, seeking to lure young first-time buyers away from the used car market to its sub – 400,000 rouble ($12,100) only model.

Nissan retired the Datsun brand in 1981 but announced last year that it would relaunch the small car in emerging markets, targeting Indonesia, India, Russia and South Africa.

Russia has a growing middle class with disposable income, low car density and an ageing fleet on the road – all factors that should support future sales – but economic growth is slowing and new car sales are expected to drop by 6 % this year. Market analyst Autostat on Tuesday also predicted a 5 % decline next year.

“The main objective (in Russia) is to be a serious alternative to the used car market – this is where we want to compete,” Jerome Saigot, director of Datsun in Russia, told a news briefing in Moscow.

Saigot said sales forecasts have not been disclosed but he estimates that about six million used cars will be sold in Russia this year.

Saigot, however, believes there is room for growth in lower-cost cars. The sub-400,000 rouble segment, currently accounting for about a quarter of the market for new vehicles at about 700,000 cars, is expected to grow to 900,000 cars with about the same market share by 2017.

Datsun will compete against Russian partner Avtovaz’s Lada, but Saigot said the two brands would sell to different customers, with the Japanese targeting first-time buyers. The Datsun will be produced at Avtovaz’s Togliatti plant. Nissan and French partner Renault have struck a deal to take control of Avtovaz by mid-2014.

Via Reuters