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As Nissan Motor Company exits its ownership stake in the Chennai manufacturing joint venture with Renault, Saurabh Vatsa, Managing Director of Nissan Motor India, reiterated that the company has no plans to exit the Indian market. On the contrary, Nissan is doubling down on its India strategy, with an ambitious target to double its annual sales to 2 lakh units by 2026, Vatsa said.
“There are multiple messages circulating in the media that are purely speculative. We are not going anywhere. Nissan is staying in India. These rumours affect the entire employment that we generate across the country. We’ve divested our share stake in Renault Nissan Automotive India Pvt Ltd (RNAIPL), but it is very important to understand that with this, we have secured our capacity. We continue to produce the Magnite, export from India, and are on track to launch our new vehicles,” he added.
While Nissan India has repeatedly set ambitious sales targets, its track record reveals a consistent gap between projections and performance. In 2008, then-CEO Carlos Ghosn announced that Nissan aimed to sell over 2 lakh vehicles annually in India by 2012 by leveraging local partnerships and a new low-cost car platform. Then, a few years later, under its global “Power 88” strategy, Nissan set a goal of capturing a 10% market share in India by 2016, which would have required annual sales of approximately 4.5 lakh units. With over two decades in India, the company has struggled to gain traction and currently holds just a 0.6% share of the market.
“We will soon reach 200,000 cumulative sales of the Magnite, and people were right in calling us a one-car company,” said Vatsa. “But that’s about to change. Alongside our current CBU offerings, we’re preparing to expand our locally manufactured lineup. The transition will take us from being a one-car company to offering a multi-product portfolio with new domestically produced models. These include the B-segment MPV and a 5-seater compact SUV, followed by a 7-seater compact SUV—all part of our roadmap through FY26–27,” he added.
While Vatsa claims that with this expansion the company is targeting 100,000 domestic sales and 100,000 exports annually by FY26–27, achieving these long-standing goals will require a clear strategy, a competitive product portfolio, and significant market traction. According to experts, the company’s ability to translate intent into sustained growth remains an open question.
Path to Profitability
Vatsa says that the company sees a path to profitability. “If Nissan did not see a future in India, we would not stay. We have already invested $1.8 billion in the country (through RNAIPL) and are further investing 700 million euros into the future portfolio. This investment will be recovered as the portfolio grows in the country. What’s really important is that the portfolio will also add volumes to the network, and as the network grows, so will our volumes. We are also a very significant exporter. Last year, we achieved 100,000 units in FY25,” he said.
He added that with three-fourths of the factory’s volume destined for exports, it will be a significant contributor to the bottom line. The company stated that all current and planned Nissan models—including the Magnite, new B- and C-segment SUVs, and an affordable EV—will continue to be manufactured at the facility.
“It’s very clear that as we expand our portfolio, we are going to first make cars for India and cater to the domestic market and consumer,” Vatsa said. “By virtue of the fact that India itself is a fairly demanding market today—whether it be regulations on safety, compliance in terms of emissions, or features and specifications—by catering to the domestic market, we are able to export the Magnite and left-hand-drive versions to 65-plus markets,” he added.
The company said it plans to cater to the domestic market first, which will enable it to export these vehicles to a large number of countries. “This combined volume that we generate at the factory is going to give us significant economies of scale,” he said.
On the dealer network side, despite some dealerships closing down, the company is confident about adding more locations. “Today, we’re at 159. Now that Nissan is getting ready to expand its future product portfolio, it is obvious that many new partners are now approaching us. This year, we will close almost 180 locations,” he clarified.
This article first appeared on Autocar
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