Nissan Motor Co has decided to take on the minicar market in Japan by offering an ultracheap subcompact at 800,000-900,000 yen ($7K-8K).
The only cars in Japan that will be cheaper will be the minicars…those with engines of 660cc or smaller.
New car sales are down in Japan…but minicars, which make up 35% of new-car sales sold 11% more this year from a decade earlier.
“At this price level, this car will likely be the cheapest on the domestic market—except for minicars, which are powered by engines 660cc or smaller.
While new-car sales in Japan remain weak, minicar sales have continued to grow, thanks to their prices and low maintenance costs. Minicars accounted for 35% of new-car sales in 2006, up 11 percentage points from a decade earlier.”
Nissan’s low-priced subcompact will likely feature a 1- to 1.3-liter-class engine.
It will be manufactured at the Oppama plant in Yokosuka, Kanagawa Prefecture.nissan.subcompact.jpg
One cost-saving measure is that Nissan will use a platform that the company developed with Renault for use in low-priced subcompacts to be sold in Brazil, Russia, India, and China (BRIC).
Nissan’t next cheapest car is about $3000 more in cost.
Nissan has been buying cars from Suzuki Motors, then reselling them…making up 17% of Nissan’s new-car sales.
Nissan’s move is likely to prompt Toyota and Honda to make a similar charge….
Source : Nikkei News
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