Nissan in 12th place creates 20 asset light outlets, Auto News, ET Auto

Q. What are the three focus areas for your dealer partners in a post-COVID world?

We evolve with the changing scenarios. We are confident that our customer-centric approach will bring greater value to our customers with the Nissan NEXT Transformation Plan through rationalization and prioritization with a focus on sustainable growth. We want to achieve this with the network strategy of having fewer, large and better retail partners with optimal resource investments.

In this direction, one of the strong initiatives taken for the launch of the new Nissan Magnite was the creation of more than 20 asset light showrooms in Tier 1 cities with expansion opportunities only granted to current dealer partners. Additionally, Nissan has launched the new Nissan Magnite without adding new dealer partners in any of the country’s cities.

Q. Will a smaller facility be the norm in the future – what percentage of the points of sale will be large, small, sub, and mobile points of sale?

COVID-19 has presented unprecedented security and business continuity challenges for the full fiscal year. In the midst of the pandemic, we focused on the safety, business continuity and successful launch of Nissan Magnite.

To that end, we worked on Nissan NEXT, a business transformation plan that focuses on adding value to all stakeholders through rationalization and prioritization for sustainable growth. The pandemic has led OEMs to take the digital or hybrid “phygital” approach, as the number of outlets or their size is no longer a big differentiator in achieving higher values.

Our “Nissan Shop at Home” experience enables potential customers to research our cars online, personalize them with accessories, access financial solutions, receive an estimated exchange value of their existing vehicles, book the new car online via the payment portal and also apply for a loan at Nissan Finance. The dealership receives all information in real time and takes over the vehicle delivery process.

We have taken many steps to train the employees in the dealerships via our innovative online training platforms in order to manage this transition smoothly. Our dealers interact with customers through our digital platform and are well equipped with the technology to offer them the best shop-at-home experience.

Note: All data are estimates based on information obtained from various sources and extrapolated from ETAuto research.

Point of sale: Point of sale refers to all types of points of sale / dealers / touchpoints from which cars have been sold.

Average Sales Revenue: This is based on the average sales price per unit multiplied by the total number of units sold in a year divided by the number of points of sale.

Average sales price per unit: This is an estimated price derived from the price range and the calculation made by ETAuto. It may differ slightly from the exact price.

The Japanese automaker appears to have risen from the ashes like a phoenix with the launch of its affordable compact SUV Magnite, which recorded over 50,000 bookings in the first three months after launch. This marked the revival of the long-established brand. Although the automaker ranks last at number 12, it has made strides in building a lean and frugal retail setup. Rakesh Srivastava, Managing Director of NMIPL, shared the retail strategy and said it has opened more than 20 asset light showrooms in tier 1 cities. Edited excerpts:

As a result of the pandemic, most OEMs are seriously considering streamlining their dealership investments to make them leaner, smaller and more affordable. Demand for it has been increasing since 2019 after the Indian auto industry, and especially the auto market, began to decline, many dealers went bankrupt and some of them had to close their ornate stores. The situation has worsened with the pandemic, forcing automakers to review their retail strategy. ETAuto has analyzed the situation in detail and also turned to the automobile manufacturers to find out their plans and strategies. Based on the results, Kia India tops the table for sales per outlet, while a detailed series on the ranking will be published starting today.


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