Latest news with #RE:Nissan
Hindustan Times
7 days ago
- Automotive
- Hindustan Times
Nissan India remains steadfast on commitments despite shift in global strategy
Nissan India plans to launch three new products by FY27 - a seven seater B-Segment MPV along with a 5 seater and a 7 seater C-Segment SUVs Check Offers Nissan India is committed to its previously announced plans and growth trajectory for the Indian market, even as the global automotive giant navigates significant strategic shifts. The resolute stance was made clear recently by the company officials amidst recent industry speculation regarding its long-term presence, particularly following adjustments to its global manufacturing footprint and alliance structures. Saurabh Vatsa, Managing Director, Nissan Motor India, during a recent press conference, underscored this unwavering resolve, emphasizing that despite changes to Nissan's worldwide plans, the company's commitment to India remains steadfast and its local initiatives are progressing as scheduled. Nissan's global operations have been grappling with significant financial headwinds, with fiscal year 2024 seeing the company report a considerable net loss and a sharp decline in operating profit. In response to this, Nissan launched its comprehensive "RE: Nissan" recovery plan. The idea here is to drive efficiency and profitability across its operations by having job cuts, factory closures, and extensive cost reduction efforts. Also Read : Nissan bets big on 'RE: Nissan': Job cuts, next-gen cars. India's part in the play It is against this backdrop of global realignment that Nissan India's pronouncements gain further significance. Vatsa directly acknowledged these global shifts, stating emphatically that "Despite changes to global plans made to Nissan, Nissan India remains committed to announced plans and the plans are on track." He further clarified the manufacturing arrangement, explaining that while Renault now holds 100 per cent of the Chennai plant, Nissan has secured crucial production capacity through a contract manufacturing agreement. Vatsa explained that this allows Nissan India to convert fixed manufacturing costs into more flexible variable costs, enhancing agility and freeing up capital for future investments. Nissan India's ambitious plans for future Contrary to the recent reports, Vatsa emphasises that Nissan India is charting an aggressive growth trajectory, underpinned by a substantial €700 million (approximately ₹ 6,300 crore) investment primarily dedicated to new product development. This was announced earlier, and Vatsa pointed out that the investments are on track. The company has set ambitious production and sales targets, aiming to double annual sales to two lakh units by FY2026-27, with one lakh units designated for domestic sales and one lakh for exports. Vatsa affirmed that the Renault Nissan Automotive India Private Ltd (RNAIPL) plant in Chennai, with its total installed annual capacity of 4.8 lakh units, is sufficiently equipped to meet these mid-term goals, providing sufficient capacity for the next five years. Also Read : Nissan bets big on Magnite facelift to kickstart its turnaround journey Central to this expansion is a robust product pipeline. Nissan India had earlier announced its plans to launch a new seven seater B-segment MPV, which is likely to be based on the Renault Triber along with a 5 seater and seven seater C-Segment SUVs. The 7-seater B-segment MPV is expected in Q1 2026, while the 5-seater C-segment SUV slated for mid-2026, Vatsa confirmed. The C-Segment SUV will share its underpinnings with the upcoming Renault Duster. Additionally, a 7-seater C-segment SUV is planned for early 2027. According to Vatsa, this model will provide a unique design for both the outside and the inside and will not be just a stretched version of the 5-seater - indicating a wider strategic intent in the lucrative SUV segments. In addition to fresh models, Nissan India is looking to grow its physical presence - it intends to grow its dealership network from about 160 outlets to 180 by the end of 2025 and aims to end this fiscal year with 300 touchpoints. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 30 May 2025, 08:00 AM IST
Hindustan Times
19-05-2025
- Automotive
- Hindustan Times
Nissan's global restructuring could impact its India manufacturing operations: Reports
Nissan Magnite is the only the only India made offering from the Japanese carmaker in the country. Check Offers As Nissan Motor Co. embarks on a massive global cost-cutting and restructuring strategy, reports suggest the Japanese carmaker may shut down its manufacturing operations in India. While the company has not issued any official confirmation, multiple Japanese media outlets—including Yomiuri Shimbun and Kyodo News have reported that India is among the countries being considered for an exit. Earlier in April this year, Renault Group announced that it would acquire the remaining 51 per cent shareholding in the Renault-Nissan Automotive India Private Ltd (RNAIPL). The majority stake in the RNAIPL is currently held by Nissan Motor Corp. Purchasing this stake will allow Renault to take complete ownership of the Renault-Nissan Alliance's manufacturing plant in India. Also Read : Nissan bets big on 'RE: Nissan': Job cuts, next-gen cars. India's part in the play Nissan Motor India has further commented 'As a policy we do not comment on speculatory reports. Nissan remains committed to its India operations, dealers, partners, and customers. Regarding the recent reports on the potential closure of certain plants, Nissan wants to clarify that this news is speculative and not based on any official information of the company." It continued, "We have officially announced to consolidate the production of Nissan Frontier/Nissan Navara pickups, currently split between Mexico and Argentina, into a single production HUB in the region, centralized at the CIVAC plant in Morelos, Mexico. In March, we announced that Renault Group would own 100% of Renault Nissan Automotive India Private Ltd (RNAIPL), by acquiring the 51 per cent-shareholding currently held by Nissan. At this time, we will not be providing further comments on this matter. Our focus remains on our operations and the dedicated workforce that drives our success. We are committed to maintaining transparency with our stakeholders and will communicate any relevant updates as necessary." India plant may be on the chopping block Among the seven global factories Nissan is reportedly planning to shut down, its Indian production facility is likely under review. Although not confirmed, this development comes at a time when the brand's presence in India has been dwindling. The Renault-Nissan alliance plant in Oragadam, Tamil Nadu, currently manufactures the Magnite, the only India made offering from the Japanese carmaker in the country. India had once been a major focus market for Nissan, but with a limited product portfolio, falling sales, and increasing EV competition, its long-term commitment has appeared uncertain. If production in India is halted, it would effectively end Nissan's domestic manufacturing footprint—unless a new strategy is introduced. It must be noted though that in a public statement, Nissan and its subsidiary Nissan Shatai Co. labelled the plant closure reports as 'speculative" and 'not announced by the company." However, industry observers believe that even without an official word, the writing may be on the wall for Nissan's Indian manufacturing unit. Nissan has earlier committed to launch three new products in the Indian market. The carmaker had revealed that it will launch a compact SUV and a B Segment seven seater MPV. The company noted that the new MPV is scheduled to launch in 2025 as a brand- new addition to the India product portfolio. Meanwhile, the 5-seater C-SUV (compact sports utility vehicle) will be launched in early 2026. Additionally, the carmaker also plans to bring in an India developed electric SUV. Also Read : Nissan bets big on Magnite facelift to kickstart its turnaround journey The bigger picture: Part of a $3.4 billion global overhaul Nissan is aiming to reduce global costs by 500 billion Yen (approx. ₹ 28,000 crore) as part of its turnaround plan. The company also plans to eliminate 20,000 jobs worldwide. While specific closures have not been officially announced, other countries reportedly facing plant shutdowns include Argentina, South Africa, and two sites in Mexico. Furthermore, Nissan is also eyeing the closure of two major Japanese plants located in Oppama and Hiratsuka, both operated by its subsidiary, Nissan Shatai Co, the reports stated. These factories—responsible for roughly 30 per cent of Nissan's domestic output—are situated in Kanagawa prefecture, near the automaker's global headquarters. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 18 May 2025, 08:30 AM IST
Hindustan Times
14-05-2025
- Automotive
- Hindustan Times
Nissan bets big on 'RE: Nissan': Job cuts, next-gen cars. India's part in the play
Nissan reported net loss of $4.5 billion, with operating profit declining a whopping 87.7 per cent in FY25 Check Offers The Japanese automaker, Nissan recently revealed its worst financial performance in more than two decades, representing a turning point for the brand. Fiscal year 2024 (FY24), which ended on March 31st, reported an emphatic fall, leading to a wide-ranging recovery plan termed "RE: Nissan." This strategy aims to take the company to profitability by FY26, righting deep-seated cost problems in the face of an unpredictable global auto industry, with particular implications and opportunities for its Indian business. A sobering financial reality Nissan's FY24 performance was a strict "wake-up call," as eloquently put by CEO Ivan Espinosa. The automaker announced a whopping net loss of $4.5 billion, with operating profit declining a whopping 87.7 per cent. These financial woes were caused by a combination of reasons such as reduced volume sales in major markets, a poor product mix, harsh pricing competition, and most importantly, soaring operational and restructuring expenses. Also Read : Carlos Ghosn predicts trouble ahead for Nissan-Renault Alliance amid shrinking ties Nissan Chief Financial Officer Jeremie Papin pointed out that higher costs, such as a large $405 million spent on restructuring, were the main reason for the losses. The harsh reality, as Espinosa explained, is that the variable costs of the company are increasing, and its fixed costs have exceeded what current levels of revenue can support. The paradox of sales versus profitability Interestingly, the economic downturn was not entirely a mirror of falling sales numbers. Worldwide, Nissan's auto sales fell by a relatively modest 2.8 per cent. Although the key Chinese market fell by a sharp 12.2 per cent, North American sales surprisingly rose by 3.3 per cent. Total revenue was flat overall, falling by less than half a percent year-over-year. This means that Nissan was still selling cars but was struggling with the cost of doing business, effectively "drowning in costs" while still having a facade of sales activity. The company expects FY25 to be a transition year, predicting a modest decline in worldwide sales and ongoing financial losses, the magnitude of which is still shrouded in global uncertainties such as possible tariff effects, which are estimated to cost Nissan approximately $3 billion. Nissan wants to cut engineering expenses for new-product development by 20 per cent, reduce product complexity by 70 per cent, and speed up development cycles to 30 months "RE: Nissan": A blueprint for transformation In reaction to the crisis, Nissan has initiated "RE: Nissan," a drastic turnaround plan. CEO Ivan Espinosa reaffirmed the call for "self-improvement with increased sense of urgency and pace, heading towards profitability based on lower reliance on volume." The strategy maximizes Nissan's current liquidity level of a sizable $23 billion, further buoyed by available credit lines totaling $14.2 billion. One of the pillars of "RE: Nissan" is cost cutting aggressively. This involves another 10,000 job reductions, taking total workforce cuts to around 20,000. The majority of these will come from the elimination of seven factories by 2027, rationalizing its global presence from seventeen to ten bases. Also Read : Renault buys Nissan's 51% stake in India joint venture, takes full control of operations The aim is to streamline manufacturing processes and keep plant use at around 100 per cent. In addition, Nissan wants to cut engineering expenses for new-product development by 20 per cent, reduce product complexity by 70 per cent, and speed up development cycles to 30 months. All these goals individually are aimed at a cost reduction of $3.4 billion. The Indian imperative: Challenges and opportunities For Nissan India, the global restructuring poses challenges and opportunities alike. The Indian market has been a mixed bag for Nissan, with the Magnite compact SUV being a key volume driver and a success story. Launched towards the end of 2020, the Magnite has played a key role in keeping Nissan alive in the Indian automotive landscape, riding on the Renault-Nissan alliance's CMF-A+ platform that it shares with the Renault Kiger. The global "RE: Nissan" strategy's focus on building on current partnerships strongly mirrors Nissan's operations in India, around the Renault-Nissan Automotive India Private Ltd (RNAIPL) production plant in Oragadam, Chennai. This facility is a key center for both local and export production. As Nissan attempts to consolidate its supply base internationally for more volume with fewer suppliers, the Indian operations, with proven local sourcing, may prove to be key. Also Read : Nissan bets big on Magnite facelift to kickstart its turnaround journey The worldwide strategy of emphasizing profitability with reduced dependence on sheer numbers can translate into a more segment-focused strategy in India. This can mean ramping up on successful segments such as compact SUVs, with perhaps new hybrid technologies—a focus area for North America—tailored to the Indian market, and competitive cost structures. Though specific effects of global plant shutdowns or layoffs on Indian operations have not been mentioned, the emphasis in all likelihood would be on optimizing the Chennai factory's production and efficiency. Designing new crossovers elsewhere could also entail future products designed to suit Indian tastes. The carmaker recognizes that FY25 will be a transition year and one of difficult choices. CFO Jeremie Papin said, "While FY25 is a year of challenges and uncertainties, the actions we are taking as part of our new recovery plan are designed to deliver positive outcomes in FY26." Nissan's road to revival is unquestionably daunting. Yet the fact that it can continue selling cars and boasts substantial cash buffers gives its aggressive "RE: Nissan" strategy a basis. The next few months will prove pivotal in showing if these global and local market strategic adjustments can get the automaker back on the path of sustainable profitability. The success of the Magnite models in India is a beacon of how targeted, market-specific tactics can bear fruit even in the face of other corporate difficulties. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 14 May 2025, 09:54 AM IST
Motor 1
13-05-2025
- Automotive
- Motor 1
Nissan Lost $4.5 Billion Last Year. Here's How It Plans to Survive
Nissan just had its worst financial year in over two decades. The Japanese brand announced its final results for Fiscal Year 2024 (FY24), which ended on March 31. As expected, the numbers are down. Way down. Operating profit fell 87.7 percent due to "lower volume, a weaker mix, pricing pressure, and increased costs," per Nissan Chief Financial Officer Jeremie Papin. Increased cost was the big factor, with $405 million going to restructuring costs. At the end of the day, Nissan recorded a net loss of $4.5 billion. Photo by: Christopher Smith / Motor1 Sales Were Healthy, Despite the Losses Ironically, Nissan's actual sales weren't that bad. The automaker fell just 2.8 percent globally, led by China, where sales were off 12.2 percent. In North America, sales were actually up 3.3 percent. The company's revenue was nearly flat year over year, falling less than half a percent. But Nissan is drowning in costs. 'Our full-year financial results are a wake-up call,' said Nissan CEO Ivan Espinosa. "The reality is very clear. Our variable costs are rising. Our fixed costs are higher than our current revenue can support." As such, Nissan has already written off FY25 as a transition year. Global sales are projected to decline slightly as it loses more money, but exactly how much money is still unknown. Uncertainty involving tariffs is throwing a monkey wrench into forecasts for pretty much every automaker , but Nissan currently estimates tariffs will cost the company approximately $3 billion. That's the bad news. But Nissan isn't dead yet. Nissan's Plan to Recover 'Nissan must prioritize self-improvement with greater urgency and speed, aiming for profitability with less reliance on volume," Espinosa said. "This is what we're setting out to do with our new recovery plan, RE: Nissan." Yes, RE: Nissan is the official name for the company's turnaround plan. It starts with liquidity—Nissan still has $23 billion to work with, plus another $14.2 billion in credit. From there, step one is to cut costs, and Espinosa confirmed an additional 10,000 layoffs would come , bringing the total workforce reduction to approximately 20,000 people. The majority of these cuts will come on the labor side, due largely to Nissan closing seven plants, bringing its total down to 10. This will all happen by 2027. Photo by: Nissan Nissan plans to consolidate its manufacturing processes to keep utilization near 100 percent. For new product development, the company will lower engineering costs by 20 percent and achieve a 70-percent reduction in complexity. Development time will also be ramped up to 30 months. If everything works out, these measures will reduce costs by $3.4 billion. 'This is the area where we need to go further and faster,' said Espinosa. Companies can't simply cut the fat to achieve profitability, so the other aspects of RE: Nissan will utilize its existing partnerships to better serve specific markets around the globe. The company will seek to consolidate its supply chain to achieve more volume with fewer suppliers. And new-vehicle development will not slow down. Espinosa emphasized new hybrids and crossovers for North America were coming, and yes, a new Skyline is confirmed . However, it's unclear at this time if it will be a sedan, a fire-breathing GT-R successor, or a bit of both. Only time will tell if Nissan's plan will work. Right now, general tariff chaos makes it incredibly difficult to predict the automotive future. But the takeaways from Nissan's FY24 report are twofold: The company is selling cars. And it still has money in the bank. Things could certainly be worse, and if this plan comes together, Nissan expects profitability in 2026. "2025 will be a year of transition for us, a year of decisions," said Papin. "We have enough liquidity to cover our funding needs, which will support us as we restructure our business. While FY25 is a year of challenges and uncertainties, the actions we are implementing as part of our new recovery plan are designed to yield positive results in FY26." More News From Nissan: Carlos Ghosn Says Nissan Is in a 'Desperate Situation' Nissan's Bold New Strategy: Sell More Cars Get the best news, reviews, columns, and more delivered straight to your inbox, daily. back Sign up For more information, read our Privacy Policy and Terms of Use . Source: Nissan Share this Story Facebook X LinkedIn Flipboard Reddit WhatsApp E-Mail Got a tip for us? Email: tips@ Join the conversation ( )
