Nissan tipped to chalk up big jump in sales

 

Sectoral analysts agree that the expansion in Nissan's model mix in Malaysia, besides the recovery of the domestic automotive sector, will lead to robust growth for Nissan sales in general and Tan Chong in particular.

NISSAN is seen by many in the domestic car market as being ready to chalk up the biggest leap in sales in Malaysia over the next few years.

Comments by local distributor Edaran Tan Chong Motor Sdn Bhd's (ETCM) chief add strength for the Japanese carmaker to stake such a claim.

"Currently, Nissan is unrepresented in 64.4 per cent of the automotive market. For the next three years, we are going for growth with introduction of more new models," ETCM executive director Datuk Dr Ang Bon Beng said.

Total industry volume (TIV) stood at 490,768 units last year, and Nissan was not getting something from about 330,000 vehicles during the year because it did not have presence in certain segments.

The market is estimated to slow down to 500,000 units in 2009 and again, ETCM will not be having anything from two thirds of the total volume for the same reason.

Hence, ETCM and principal Nissan Motor Corp will unveil new models to plug the gaps in three segments of the market and the line-up will kick off with a brand new luxury sedan next year, Ang said.

"Nissan is not represented in the A, B and D segments of the car market," he disclosed in an interview after presenting prizes for the winners of 2009 Nissan Treasure Hunt that started from Kuala Lumpur and ended in Kuantan recently.

The A segment groups the likes of Perodua Viva and Naza Forza and the B segment has Perodua Myvi and Proton Saga, among others. These two segments make up nearly 60 per cent of the local TIV.

The D segment, on the other hand, is where big sedans like Honda Accord and Toyota Camry are competing. The segment accounts for just some 3 per cent share of the total industry volume, but with higher margins to their distributors.

Ang did not disclose the large sedan that will kick-start ETCM's renewed effort for a bigger volume. But it is an open secret that the car would be the Nissan Teana.

It will be locally produced at parent Tan Chong Motor Holdings Bhd's new assembly plant in Serendah, Selangor, to bring down its price so that it can compete on level terms with the Accord and the Camry.

Sectoral analysts agree that the expansion in Nissan's model mix here, besides the recovery of the domestic automotive sector, will lead to robust growth for Nissan sales in general and Tan Chong in particular.

Analysts at AmResearch Sdn Bhd, for instance, noted: "Major competitors do not have such vacuums to fill, hence are unlikely to see similar growth potential as Tan Chong from a model range expansion."

They added that the company had managed well despite the recent downcycle to register a 0.5 per cent volume growth year-to-date and increasing market share to six per cent from five per cent last year.

In comparison, the overall market contracted by about 10 per cent in the first seven months. However, the local TIV has shown three consecutive months of sequential improvement since May, suggesting the worst is already behind.

Ang said ETCM is targeting a 6 per cent market share for 2009, buoyed by models like the Grand Livina, a multi-purpose ve-hicle, as well Latio and Sylphy sedans.

ETCM's product expansion, he said, will be done in tandem with efforts to continuosly provide excellent sales and services experience and foster closer relationship with customers.

One such initiative is ETCM's annual treasure hunt. In its 11th year, the 2009 edition attracted 193 Nissan owners as well as their families and friends in 50 teams.