Nissan to Launch Infiniti Brand in Japanese Market
Nissan will introduce Infiniti-branded cars to Japan, starting with the redesigned Skyline, in an effort to challenge German luxury brands on home turf.
Nissan will begin selling its Infiniti luxury brand in Japan, marking the first time the marque has been offered in the company’s home market. The move, reported by Japanese business daily Nikkei, is aimed at capturing demand for premium vehicles and challenging the dominance of German rivals such as BMW and Mercedes-Benz.
The first Infiniti model to reach Japanese showrooms will be the redesigned Skyline, which is expected to go on sale as early as winter 2013. Internationally, the same car is known as the Infiniti Q50, which at launch in the US carried a base price of $36,700 (3.6 million yen). Pricing and sales targets for Japan have not been announced.
Infiniti production and sales strategy
Production of the Japanese-market Infiniti models will take place at Nissan’s Tochigi Prefecture plant, according to the Nikkei report. Rather than establishing a separate sales network, Nissan will offer Infiniti models through its existing dealership channels. The company has not ruled out expanding the Infiniti line-up in Japan, but will base future decisions on initial sales performance.
Infiniti has traditionally been focused on export markets, with most production based in Japan. The brand has struggled to contribute meaningfully to Nissan’s operating profit in recent years, in part due to the strong yen making exports less competitive. According to Nissan CEO Carlos Ghosn, Infiniti accounted for less than 1 percent of the company’s operating profit over the previous two years. However, management expects the brand to meet its operating profit margin target for the fiscal year, helped by a weaker yen and lower depreciation charges.
Competing in Japan’s luxury segment
Nissan’s decision to introduce Infiniti domestically comes as Japanese buyers show increased interest in premium cars, a segment long dominated by German manufacturers. By offering Infiniti alongside its mainstream models, Nissan is positioning itself to attract customers who might otherwise look to established European brands. The company’s approach differs from rivals such as Toyota, which has not introduced its Lexus brand under a separate identity in Japan until relatively recently.
Whether Nissan expands the Infiniti line-up in Japan will depend on how the market responds to the initial launch. For now, the company is focusing on leveraging its existing dealer network rather than investing in standalone Infiniti showrooms. This cautious approach allows Nissan to test demand without committing to major infrastructure changes.
The move to bring Infiniti home follows a period in which Japanese brands have faced challenges in overseas markets, notably China, as covered inJapanese brands face slow recovery in Chinese car market. Nissan’s domestic strategy for Infiniti could help offset some of those pressures if it succeeds in attracting Japanese luxury buyers.
