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Growth On Track

 

Global Sales EVP Takao Katagiri explains August sales and market share results in the context of slowdowns in China, Europe and strong growth in key developing markets, such as Russia and Brazil.

Q1) Please briefly summarize global sales results for August.

Tako Katagiri EVP

Nissan maintained a strong momentum of global sales for August at 380,000 units sales, which is up 5% year-on-year growth. We achieved a year-on-year increase for 36 consecutive months, for three years in a row.

Q2) What is happening in the China market, where August sales figures suggest sluggish growth?

Katagiri EVP

China TIV is still growing versus last year, even though its growth rate is not as high as that of last year. This is because of a combination of many factors such as a little slowing down of macro economic trends or the introduction of the license plate issuance restriction in Guangzhou and so on.

We should not be pessimistic, but on the other hand we have to be careful. We have to continue to look at the situation carefully.

August wholesales of most Japanese brands were below last year’s volume, mainly due to the high level of dealer inventories. In case of Nissan, our volume has grown in August by 0.6% versus last year, so relatively speaking we are a little better.

As for the current trend of retail sales and order taking from the customers, our pace is not weak. It’s strongly growing.

So, we anticipate a certain amount of volume in the month of September, even though we have to carefully watch the development of demonstrations among people about Japanese products. Many things are changing so we have to be very careful – carefully watching the market – even though order taking from the customers has been strong.

Q3) Nissan’s sales in Europe are up 3.1% year-on-year, but TIV is down. How do you explain this?

Katagiri EVP

TIV status depends on countries in Europe. TIV of some markets has not decreased – for example, the UK – or are even growing, especially in growing markets, such as Russia.

Nissan keeps minimizing the impact of the crisis in Europe, especially the southern part of Europe and sustaining its growth by enhancing the sales in those markets, such as the UK or Russia.

In particular, we’ve increased sales in Russia, which is the biggest volume market for Nissan in Europe, by a strong SUV lineup, such as the Juke, Qashqai or XTrail. Those are the major contributors to sales growth. And for further growth in Russia, the new Almera, developed specially for the Russian market, and to be produced in the Togliatti plant of our Alliance partner AvtoVAZ, is expected to be launched in early 2013.

 

So, we have already invested in the future growth of Russia.

Q4) What of the sales strength in developing markets?

Katagiri EVP

In the case of Nissan, we have been making very strong growth in those growing markets. For example, in the month of August in Thailand, Nissan grew by more than 40%; Brazil more than 80%; and India more than doubled over last year.

That is driven by the introduction of a lot of strong new models. At the same time, our expansion of the sales network has been planned and implemented as a part of Nissan Power 88. That is supporting the strong growth in those growing markets.

For example, in the case of Brazil, we have the Sao Paulo International Motor Show in October. We’re eager to see the attention that would bring to the market, and in the market itself there are many activities to stimulate demand. And we are responding to those market demands by the introduction of new models or expansion of the sales network. Our growth in the global market is as planned.

 

 

 

 

 

 

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