SIAM’s 54th Annual Convention: Nissan Exports 73% Micras; Plans Explained

The SIAM’s 54th Annual Convention focused on how to make India a major automotive hub, aiming to make the automotive industry an engine of India’s economic growth. The new Prime Minister in his Independence Day Speech requested multinational companies to make India their manufacturing centre and export nucleus.

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Here is a brief explanation of Nissan’s export plans and current scenario which includes some interesting numbers.

  • The Renault-Nissan Alliance has made India a manufacturing hub for some of its models. They believe that exports help in optimum utilization of their plant’s capacity. In fact, the alliance exports 61 per cent of their annual produce, making it the only manufacturer in India to export more than their domestic sale.
  • 73 per cent of Nissan’s exports constitute of the Micra hatchback, the remaining 27 per cent comprise of the Sunny.
  • In the past 4 years Nissan has extended its exports to more than 100 countries including Asian, European, Latin American and African countries. The produce from the Chennai factory also finds its way to the Middle East, Australia and New Zealand.
  • Nissan India also exported 1,800 types of spare parts to 34 different plants in 24 countries worth 9.7 billion US dollars, making India come 2nd in terms of volume of shipping parts within Nissan.
  • The company has also given special importance on increasing localization to decrease production costs. They have developed 272 suppliers of which 42 per cent are located near their Chennai plant.
  • The Renault Nissan alliance employs more than 13,000 people in various departments like Research and Development, manufacturing, sourcing, sales and marketing.

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Like all manufacturers, the Renault-Nissan alliance is also hoping to capitalize on the reforms being introduced by the new government. They are continuing to give emphasis on creating a local pool of talent cum workforce. From 34 per cent local talent in 2010, the level of local workforce has increased to 77 per cent.

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