Nissan pulls the plug on Datsun brand, all production halted
Japanese automobile giant Nissan has announced that it will pull the plug on its Datsun sub-brand in India. All production has been ceased. In March 2013, Nissan had announced the revival plan of Datsun as a low-cost car brand for use in India, Nepal, Indonesia, South Africa, and Russia. However, sales figures indicate that the brand never gained traction on our shores.
Why does this story matter?
Revived in 2013, Datsun was supposed to serve as an entry-level brand for Nissan. However, it never appealed to the Indian audience, and with less than 0.1% of the market share, Nissan kept incurring losses. Meanwhile, Nissan has assured existing owners that they will not face difficulties in terms of servicing, parts, and warranties. They can get their vehicles serviced at Nissan's network.
What led to the brand's demise?
Datsun's relaunch took place at a time when Nissan itself was not doing well. The company faced far too many setbacks including a global fall in sales, its stagnation in the US and European markets, the Carlos Ghosn scandal (the then CEO of Nissan), and the electrification hurdle. Also, starting and maintaining a new brand takes a lot of effort and money.
Meanwhile, recalling the Carlos Ghosn scandal
Carlos Ghosn, the former chairperson of Nissan, was accused of under-reporting his remunerations by around $79 million in the financial reports between fiscal 2010-17. As a result, he was fined JPY 200 million by a Japanese court. In December 2019, Ghosn fled from Japan to Lebanon via private jet in a musical instrument box. Interpol has issued a red notice seeking his arrest.
All Datsun cars became BS6-compliant in 2020
India was the first country where Datsun was revived, with the world premiere of the Go car being held in 2013. Nissan also introduced the RediGo hatchback and the Go+ compact MPV soon after. In 2020, Datsun had updated all its vehicles to meet BS6 emission norms. Moreover, the RediGo also received a facelift with an upgraded 1.0-liter petrol engine and an AMT gearbox.
What different steps could have been taken?
Datsun could have positioned itself as the entry-level model maker in various segments such as hatchbacks, sedans, and SUVs. This move could have positioned the brand as a smart and intelligent choice. However, it came to be known as the 'budget' one. That essentially is what it failed to see. People prefer to buy value-for-money products over those that appear cheap.
