April 11, 2012
Nissan’s Global Market Share Hits Record High in 2011
Takao Katagiri, Nissan’s EVP in charge of Nissan’s global sales, spoke with the Global Media Center about sales performance in fiscal 2011.
Q1. What are the key points of Nissan’s 2011 global sales?
Driven by extremely strong momentum, our global sales set a new mark in fiscal 2011. According to a flash report, Nissan’s global sales reached 4.84 million units, up 15.7% on year. As a result, our global market share is estimated to increase to 6.4%, a record high.
Q2. By country, how did sales performance fare?
Nissan reached an all-time high in terms of yearly sales volume and market share in many markets. For example, sales hit new records in China, Thailand, Indonesia, Australia, the U.S., Canada, Brazil, Chile, all of Europe, as well as France, Russia, and India.
Nissan’s market share is expected to reach an all-time high in China, Indonesia, Australia, the U.S., Mexico, Canada, Brazil, Chile, all of Europe, Italy, France, and India.
Q3. What led to record results?
There were four factors behind the strong performance.
One factor was the quick response and fast recoveries from the 3-11 earthquake and tsunami, as well as the flooding in Thailand. This was a result of cross-functional and cross-regional undertakings that involved the entire Nissan group, including the dealers and suppliers. Collective efforts minimized the decline in our production supply.
The second factor was the strong sales momentum extending from headquarters to front-line sales. That is expected to continue beyond FY2011, helped by our product offensive and development of the distribution network over the past years.
The third driver was alignment between our new products and market or customer needs. For example, the Tiida, Versa, March, and Sunny were well received by the markets.
The fourth factor was enhancement of the sales network in terms of quantity and quality. This contributed to our sales growth.
Q4. Nissan enjoyed double-digit sales growth in China, the U.S., and Europe. How would you describe performance in each region?
In China, the effective introduction of new models as well as minor changes, along with systematic sales and marketing initiatives, resulted in a strong performance that significantly outpaced the industry’s overall volume trends.
The Chinese auto market stood at 17.2 million units, up 3.4%, while Nissan’s sales volume grew 21.9% to 1.25 million units. As a result, our market share for the year reached 7.3%, setting a new record. Today, Nissan is the fourth largest carmaker in the market and a leader among Japanese brands. Main contributors were Sunny, Tiida, Qasqai, Teana, and Sylphy, which sold more than 100,000 units each.
Looking at the U.S., the two main Japanese competitors, Toyota and Honda, they each saw performance fall short of the previous year.
Nissan boosted its sales on year, with U.S. total industry sales at 13.2 million units, up 8.9%. Meanwhile, Nissan’s sales volume rose 11.8% to 1.08 million units. As a result, our market share reached a new high of 8.2%. Sales of Altima grew the most among Top 10 models – 23.6% on year – largely contributing to the strong performance.
In Europe, despite sluggish TIV, Nissan’s sales remain strong. The European market increased 1.6% to 18.4 million units.
That number includes Russia, where robust demand made up for the decline in southern Europe such as Italy and Spain. Our retail sales volume was up 17.5% to 713,000 units. As a result, our market share is expected to reach an all-time high at 3.9%. The company’s performance in Russia deserves special mention, as our sales grew 57.3% to 161,000 units.
Here in Japan, supported by recovery from the natural disasters and restoration of government subsidies for eco-friendly car purchases, TIV stood at approximately 4.8 million units, up 3.3%. Nissan’s sales stood at 656,000 units, up 9.2% year-on-year. Our market share stood at 13.8%, the second largest in the Japanese market.
In other growth markets, Nissan is in good shape, notably Brazil, Indonesia, India, and Mexico. This is a result of successful launches of new models and effective dealer network development. Our sales grew at a double-digit rate in all four markets – 94.9% in Brazil, 41.8% in Indonesia, 173.2% in India, and 20.7% in Mexico. The company is gaining momentum.
Q5. What are the key points in the new fiscal year?
There are three key factors this year. The first is extremely strong sales momentum, and we will continue developing and accelerating the momentum. The second is more specific: Nissan will keep on boosting sales and building brand power through its new product offensive. The third is to continue developing our distribution network in terms of quantity and quality. Expansion of our sales network will reach its most important stage this year, and we intend to increase the number of outlets by over 700 globally within the year.