Nissan India, one of the rising car maker of India is all set to reduce price of its small hatchback Nissan Micra
. Nissan India has also launched Nissan Micra in Diesel variant recently. Presently most of
the profit for company comes from exporting of Nissan Micra and domestic car market has very little role to play. Company has to revise the price for this car as it is priced much higher then the other cars of this segment, which is one of the main reason of lesser number of sales of Nissan Micra in domestic auto market. Now the question arises that if Nissan India is getting very good profit from foreign auto market then what is the reason for lowering the price of Nissan Micra?
One of the important reason for Nissan India to revise price of its Nissan Micra model is that it is true that foreign auto market is generating good revenue for the company but it is also true for the other auto giants such as Hyundai India and Maruti Suzuki. Also when it comes to point of domestic auto market the other two companies have a firm hold here also and Nissan India have to work really hard to to sustain their presence.
Another reason for Nissan India to concentrate on domestic car market is scrapping policy. This police was introduced in Britain and Europe to provide incentives to car manufacturers making fuel efficient cars. But due to recession this policy was called off and companies like Hyundai India, Maruti Suzuki and Nissan Indiawho were enjoying 10 to 15% of cost advantage by exporting their products had to turn back and concentrate on the domestic market and surely Nissan India suffered most. Also other car giants were able to sold their cars during recession period but Nissan India had only Nissan Micra which marked a sale of 5000 units since its launching.
So in order to handle this situation cost engineers from Japan Headquarter were brought to rectify the high price issue. This step will surely help Nissan India to bring its popular model price down and increase profit in domestic as well as foreign auto market despite of increase of taxes and export duties. This step can be considered as an apt decision at right time and will surely gather attention from all.