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Tuesday, June 28, 2011

Ghosn bases ambitious goal on rapid growth in emerging economies

Nissan targets 8% share of global market in six years


Staff writer

YOKOHAMA — Nissan Motor Co. CEO Carlos Ghosn said Monday the automaker aims to achieve a global market share of 8 percent by the business year ending in March 2017 by focusing on rapidly expanding emerging markets.

The figure shows that Nissan is taking a bullish stance on strong growth in emerging economies despite the negative impact of the March 11 earthquake and tsunami.

Ghosn also said Nissan, which currently has a market share of about 5.8 percent, aims to increase its corporate operating profit to 8 percent from 6.1 percent by the 2016 business year.

Nissan plans to launch a new product every six weeks, which would give it 51 new Nissan and luxury Infinity models.

"We will also concentrate on increasing our presence in Brazil, India and Russia, as well as in the next wave of emerging markets, including the ASEAN 5 — Indonesia, Thailand, Malaysia, the Philippines and Vietnam," he told a news conference in announcing a new six-year business plan, dubbed "Nissan Power 88."

Amid speculation that Nissan would announce a global sales target of 10 million units with its French parent Renault SA, a target that no automaker has ever achieved, Ghosn ended up avoiding the topic, saying it wouldn't benefit the company.

Breaking down the six-year plan, Ghosn said Nissan is aiming for a 10 percent share of the rapidly growing Chinese market by 2016, from 6.2 percent at present.

In Russia, it will seek a 7 percent share, compared with 4.8 percent.

Ghosn said Nissan and Renault are in negotiations with Russia's largest automaker, AvtoVAZ, to boost their stake to more than 50 percent, of which Renault aims to take a majority and Nissan a minority. He said he's hoping for a positive result from the talks by the end of this year.

In Brazil, Nissan will shoot for at least a 5 percent market share, against the current 1.2 percent.

Nissan announced last week that it expects its global sales to increase 9.9 percent to 4.6 million units and net sales to rise 7.1 percent to ¥9.4 trillion for the business year to next March. But it projects a 14.4 percent fall in operating profit to ¥460 billion and a 15.4 percent slide in net profit to ¥270 billion.



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