Nissan Micra price likely to be lowered soon

Nissan India, the famous car maker is planning to reduce the price tag of its famous hatchback Nissan Micra which recently got its diesel version. The overpriced hatchback from company is more famous for its exports and that what is keeping its Nissan’s Oragadam plant in profit situation. The average speced hatchback from Nissan is being priced much higher than other major players in market and that is what is becoming the major reason of its lowered sales in Indian Auto market. But owing to its exports which constitute the major part of its production, the company is able to maintain handsome profits for the product. Then the question arises, if the company is making good profits in foreign market then why is Nissan Micra price being considered for revision in domestic market?

One important reason behind Nissan Micra Price revision is that Europe makes a profitable destination in terms of exports for Nissan Micra similar to other key players such as Hyundai India and Maruti Suzuki but the difference lies with the fact that these two companies have a good hold on the domestic market whereas Nissan yet has to work hard in that arena. Maruti Suzuki and Hyundai India managed to sell its cars even at the lowest swing of recession while on the other hand, Nissan has only Nissan Micra which marked a sales of 5000 units since the day of launch. Moreover, owing to scrapping policy in Britain and Europe, Indian hatchback manufacturers were at great advantage as this police was used to provide incentives to manufacturers who come up with fuel efficient cars. Three years after this, the world faces the cash crisis and because of that, this scrapping policy was called off, leading Indian Hatchback manufacturers in dark. Thus companies like Hyundai India, Maruti and Nissan who were enjoying 10 to 15% of cost advantage with these exports had to turn back and concentrate on the domestic market.

In orfer to deal with the situation, Nssan India brough the cost engineers from is Japan Headquarters and wll now hunt for bigger localisation of its products. This will hep the company reduce its cost and thus the exports will also show profits inspite of increased export duties and taxes. Thus we see a smart move from the company to maintain its profits in both domestic and foreign market.

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