Nissan Motor Co., Ltd. unveiled a major expansion strategy in the Africa, the Middle East and India region as part of the company’s six-year midterm plan, Nissan M.O.V.E. to 2022. Nissan aims to build on its strengths in markets including South Africa, India, the United Arab Emirates, Egypt and parts of sub-Saharan Africa. The company plans to maintain and build on solid profit margins in the region.
Nissan will further develop strong partnerships and use local talent to meet growing vehicle demand. Industry wide sales in the region are expected to rise by about 40% to more than 12 million vehicles a year by 2022.
Under the plan, Nissan aims to:
- Build on strong FY17 growth in the Gulf and South Africa
- Increase market share in Turkey, Saudi Arabia and India
- Expand industrial operations into new “frontier” markets, building on a solid presence in Pakistan and Nigeria, with more countries to follow
- Extend Nissan Intelligent Mobility products and services in electrification, autonomous driving systems, and connectivity
- Accelerate the Datsun brand’s presence in new and existing markets
The regional expansion is the latest announcement of the global Nissan M.O.V.E. to 2022 plan. Launched in fiscal year 2017, the midterm plan calls for achieving sustainable growth while leading the automotive industry’s technology and business evolution. Globally, Nissan is targeting annual revenue of 16.5 trillion yen and an 8% core consolidated operating profit margin by the end of fiscal year 2022.
Nissan will expand into new frontier markets where few carmakers are present. This follows the March 2018 announcement that Nissan is entering Pakistan through a manufacturing and licensing agreement with its partner Ghandhara Nissan Ltd. The initiative to build Datsun models will create more than 1,800 jobs. Nissan will enter additional high-potential markets over the course of the plan.
In India, the company will strengthen its dealership network and develop the power of the Datsun and Nissan brands through initiatives including sponsorship of the International Cricket Council. Nissan has built a strong foundation for growth in India with a 480,000-vehicle capacity plant, as well as a large research and development center – both in Chennai and established with its Alliance partner, Renault.