Nissan to launch a Rs 1.33 lakh car by 2012

Nissan Motors, Japan based leading car maker is planning to launch a $3,000 (Rs 1.33 lakh) car in the Indian market. By launching this the company will increase it's profitability, as it takes advantage of its local partner's low-cost production techniques, a company executive reportedly said.

As per the statement given by Mr Gilles Normand, Nissan's corporate vice-president in charge of Africa, West Asia and India, said that the company discovered that Bajaj's margin on three-wheeler activities is by far above our current margin on our four-wheeler activities. The low-cost car will contribute to company's growth in terms of volume and profitability, he added.

It is expected that Nissan will post an operating margin of 4 per cent for the year that ended March 31, as per a company forecast, while Bajaj registered a operating margin of 10.5 per cent for the year that ended in March 2009.

Nissan is planning to introduce an ultra low-cost car in 2012 to compete against Tata Nano ($2,500 ) the world's cheapest passenger car, and take advantage of Indian expertise in low-cost production. About 50 per cent of the Indian four-wheel auto market consists of models priced below $8,000.