We are evolving with the changing scenarios. We are confident that our customer-centric approach will bring higher value to our customers with the Nissan NEXT transformation plan through rationalization and prioritization focused on delivering sustainable growth. We plan to achieve this with the network strategy of having a few, big and better dealer partners with optimum investments in resources.
In this direction, one of the strong initiatives taken for the launch of the new Nissan Magnite was creating 20-plus asset-light showrooms in the Tier 1 cities with expansion opportunities given to the current dealer partners only. In addition to this, Nissan launched the new Nissan Magnite without adding any new dealer partners in any of the cities in the country.
Q. Is smaller setup becoming the norm going forward – what percentage of sales outlets will be large, small, sub-outlets and mobile outlets?
COVID-19 has brought in unprecedented challenges on safety and business continuity for the full financial year. Amid the pandemic, we’ve been focusing on the safety, business continuity and the successful launch of Nissan Magnite.
Towards this we worked on Nissan NEXT, a business transformation plan focused on increased value to all stakeholders through rationalization and prioritization for sustainable growth. The pandemic has fast-tracked OEMs to adopt the digital or the hybrid ‘phygital’ approach as the number of outlets or their size is no longer a big differentiator in delivering higher values.
Our ‘Nissan Shop at Home’ experience allows potential customers to research about our cars online, personalise them with accessories, access financial solutions, get an estimated exchange value of their existing vehicles, book the new car online using the payment gateway and also apply for a loan with Nissan Finance. The dealership receives all the information on a real-time basis and takes over the proceedings of delivering the vehicle.
We have taken many steps to upskill the workforce at dealerships through our innovative online training platforms to manage this transition very smoothly. Our dealers interact with the customers through our digital platform and are well equipped with the technology to provide them the best shop-at-home experience.
Note: All the data is an estimation based on the information received from various sources and extrapolated by ETAuto research.
Sales Outlet: Sales Outlet means all kinds of physical outlets/dealerships/touchpoints from where cars were sold.
Average Sales Revenue: This is based on the ballpark average selling price per unit multiplied by total units sold in a year divided by the number of outlets.
Average Selling Price Per Unit : This is an estimated price derived from the price range and the calculation done by ETAuto. It may differ slightly from the exact price.
The Japanese carmaker seems to have risen like a phoenix from the ashes with the launch of its affordable compact SUV the new Magnite amassing over 50,000 bookings in the first three months of the launch. This marked the revival of the long-fledgling brand. Though ranked last at 12th in the pack, the carmaker has made progress in building lean and frugal retail setup. While sharing further retail strategy, Rakesh Srivastava, managing director, NMIPL, said that it has opened 20-plus asset-light showrooms in the Tier 1 cities. Edited excerpts:
As a fallout of the pandemic, most of the OEMs are seriously considering rationalization of investments in dealerships to make them leaner, smaller and affordable. Demand for this has been rising since 2019, after the Indian automobile industry and car market in particular began to fall, making many dealers bankrupt and forcing some of them to close their lavish and palatial outlets. The situation worsened with the pandemic and constrained the carmakers to review their retailing strategy. ETAuto analysed the situation in depth and also reached out to the carmakers to find out their plans and strategies. Based on findings Kia India tops the chart in per outlet revenue, while a detailed series on the ranking will be published starting today.
