Nissan cuts non-core operations to manage costs

Time of India

28-04-2025

Weeks after selling its stake in
Renault Nissan Automotive India
(
RNAIPL
),
Nissan Motor India
is further trimming operations to manage costs. According to an internal circular seen by ET, Nissan is cutting
non-core operations
at Renault Nissan Technology & Business Centre India (RNTBCI), which handles back-office services like finance, HR, and IS/IT through its Global Business Services (GBS) and shared service centre teams.
As part of this move, Nissan is transferring GBS and shared service centre employees to
Accenture
(for IS/IT roles) and
Genpact
(for finance and HR roles). The transition, communicated to employees on April 24 by Massimiliano Messina, senior vice president, finance and Information Technology for the AMIEO region, is expected to completed by mid-June.
Messina explained that the decision stems from a regular assessment of operations across regions. Tight
cost management
and financial discipline are critical for ensuring sustainability as Nissan undergoes a transformation to build a stronger future in the region, he said. "As we are transforming our company to improve our competitiveness and meet the challenges ahead in the most optimal way, we have reviewed the operations of our non-core activities and have concluded that changes are needed to improve our processes. There are no further changes to our business organisation to announce at this time. We can confirm there will be no job losses as a result of this project," said a Nissan India spokesperson in an email response.
Separately, Nissan has struck a bulk deal with a multi-brand pre-owned car retailer through one of its dealers-Uwe Motors, to offload over half of the 150 X-Trail SUVs it imported in July 2024. Big Boy Toyz (BBT), the Gurugram-based retailer is offering these "zero mile" seven-seater SUVs at around a 40% discount. Originally priced at ₹49.92 lakh, the vehicles are now being sold at ₹29,50,000.
Jatin Ahuja
, founder, BBT declined to comment.
The bulk sale has upset Nissan's authorised dealers. Several dealers told ET they had previously requested permission to sell the X-Trail at a lower price of around ₹35 lakh, but were refused. "Now they are selling it to a third party at a steeper discount. This is unfair," a dealer said. Another questioned why Nissan bypassed its own dealer network.
Responding to ET's queries, a Nissan spokesperson downplayed the move. "Bulk queries and corporate deals for products are a normal industry practice through authorised dealer partners and the details of the same remain confidential. The 4th Generation Nissan X-Trail is a globally renowned product, reflecting Nissan's design excellence and Japanese SUV DNA," the spokesperson said.
While corporate deals for slow-selling models are not uncommon, industry veterans noted that resorting to a bulk sale within a year of launch is unusual, especially without taking channel partners into confidence. They attributed the X-Trail's poor performance to its high pricing and omission of standard features.