Nissan Africa, Middle East and India (AMI) has unveiled a comprehensive four-year strategy for the region under the company’s Global Transformation Plan.
Making the announcement on Tuesday, the auto maker said the AMI business plan aligns with the global direction of rationalization, prioritization and focus to bring core models and technologies to a region that accounts for around 10% of the world automotive market.
“The company,” it explained, “will build on Nissan’s existing strengths in the region including continued growth in key markets and strong brand presence, maximising synergies with Alliance partners and leveraging an expansive and competitive manufacturing presence in South Africa, Egypt, India and Nigeria.
Commenting on the development, Nissan Chief Operating Officer, Ashwani Gupta, described Africa, Middle East and India as an important region, where his company will target investment in existing strengths, including SUV, and bring eight new products to the market.
“By driving efficiencies through the Alliance and focusing on core competencies, we will further increase the region’s profitability, especially in key markets including the Gulf, South Africa and Egypt,” he added.
Chairman of the Africa, Middle East and India region, Guillaume Cartier, also commented: “The AMI region has enormous potential with some of the most dynamic and diverse automotive markets in the world.
“Nissan has already established a strong foundation for sustained growth with high brand equity, a deeply embedded heritage of Nissan DNA and culture and a long history of dedicated and experienced business partners in retail and manufacturing.
“Through the mid-term, we will remain focused on driving value for the business by meeting the needs of our customers across the region.”
According to Nissan, AMI will follow the global transformation strategy, announced last month by Chief Executive Officer, Makoto Uchida, which aims to achieve sustainable growth, financial stability and profitability by the end of fiscal-year 2023.
In line with Nissan’s global plan, the AMI strategy is developed around two strategic areas of ‘rationalization’ and ‘prioritization and focus’:-
1) Rationalize: actions to improve regional cost and efficiency:-
- Optimise the regional product portfolio by 20%
- Further increase the cost competitiveness of local plants
- Seek and enhance export opportunities from AMI plants
- Leverage additional opportunities to reduce Fixed Cost
2) Prioritize & Focus: actions to build on key strengths in products, markets and technology:-
- Introduce 8 new models
- By market, focus on core models and segments to channel investment to most profitable products
- Regional priority on Sports Utility Vehicles (SUV) and affordable sedan models (B-sedan segment)
- Continue building on existing strengths in key markets including GCC, Saudi Arabia and Egypt
- Fully realize the opportunity of Africa and Turkey as high potential markets
- Launch local models including Navara in South Africa and B-SUV in India
- Phased regional deployment of Nissan Intelligent Mobility including e-POWER, EV and Connected technologies
- Increase Digitalization and enhancement of the Customer Experience
AMI will leverage the new Alliance global cooperation model in which all partners (Groupe Renault, Nissan Motor Co., Ltd. and Mitsubishi Motors Corporation) will deepen synergies to support the competitiveness and profitability of member companies.
In AMI, the Alliance ‘leader-follower’ approach will enhance efficiency and competitiveness in products and technologies including common platforms and advanced technology, while there will be additional benefits through shared procured services including IS/IT and distribution.
The global ‘reference region’ scheme will also apply, with Alliance partners focusing on core regions to act as a reference for the other members. In AMI, Nissan will be the reference in the Middle East, South Africa and Egypt; Renault in Turkey and North Africa (excluding Egypt); with joint status in India.
Cartier added: “Today, AMI is a region with opportunity for significant growth. Over the next four years we will transform opportunity to reality by bringing the right products, services and technologies to deliver lasting positive change for the business, our partners and customers.”