It was reported earlier in July that Nissan is considering pulling the plugs off its low-cost Datsun brand. Later in October, Reuters reported that the Japanese automaker is likely to axe the Datsun brand, in addition to dropping some unprofitable products and close a number of assembly lines worldwide as it seeks to boost profits by shrinking its size & operations.
Related: Nissan Likely to Quit Datsun Brand
Now according to latest reports, Nissan will stop producing Datsun cars in Indonesia and Russia from 2020. The decision comes after Nissan’s new Chief Executive Makoto Uchida replaces Hiroto Saikawa as on Sunday.
Nissan re-launched the Datsun brand in 2013 primarily to cater to markets including India, Russia, South Africa and Indonesia. Datsuns have been made in India, Indonesia and Russia and sold in 10 countries. However Datsun brand failed to create any noteworthy impact in any of its targeted markets and as the company admits, it has fallen woefully short of expectations.
As the popularity of multipurpose sports vehicles increased globally, low-price strategies centered on small cars have delivered disappointing results. The Ghosn-inspired investment in plants in emerging countries has proved un-remunerative, and is believed to have hindered the introduction of other models.
Reportedly Datsun only accounts for 1% of Nissan’s sales globally. However Datsun will continue to be produced & sold in India, where it is relatively popular while as per reports a new model is also planned.
Although in October, Ghandhara Nissan Ltd (GNL) said it is reviewing its plans to assemble Datsun vehicles in Pakistan as the company feels that under the prevalent volatile economic conditions and exchange rates, it cannot afford to go for a project of this magnitude especially with that level of uncertainty. However according to Nikkei, the production is expected to begin in Pakistan soon.