Nissan CEO Confident About 4.2 Million-vehicle Sales

by : RyanThomas

Last year, the Japanese car company Nissan Motor Company was overtaken by the Honda Motor Corporation for the distinction of being Japan's second largest car manufacturer. This fact though has not stopped the company from proclaiming that they will aim to sell 4.2 million vehicles last fiscal year. Unfortunately though for Nissan, the lowered sales in Japan and the United States has led to a dismal sales output. In fact, the company recorded its first setback last fiscal year under its Chief Executive Officer Carlos Ghosn.

Although the company failed to reach their mark and having admitted that they will need another year to achieve that goal, Ghosn is confident that the struggling Japanese car manufacturer will be able to reach their goal this time around.

One of the reasons for the declining sales for Nissan in the United States is the housing problems faced by many Americans. This problem has also led to declining sales for other car manufactures. In fact, even the surging Toyota suffered from a decreased number of sales last month.

Another reason for Nissan's plunge is the lack of choices in their lineup. Nissan also offers fewer small cars in eth global auto market. It is one of the reasons for the declining Nissan sales since the increasing prices of gasoline has forced consumers to switch to smaller and more fuel efficient cars. Nissan though has taken steps to make sure that they will be in a position to provide consumers with smaller cars in the near future. This step to answer the demand for smaller cars is seen as the way for Nissan to achieve their 4.2 million vehicle sales target.

Showing confidence on the capabilities of Nissan, Carlos Ghosn has this to say: "4.2 million cars isn't an objective in itself - the real objective is the creation of value - but I think it is within the potential of the company, not 10 years down the road but in a reasonable period of time." He also maintained that he will not give up on the target that Nissan has set. He also stated that he has to accept the fact that they have lost a year in reaching their goal. It is of course the lowered sales in Japan and the United States that has affected Nissan the most.

To increase their productivity and sales, Nissan and alliance partner Renault has announced that they will be investing in India. Renault has already released the Logan vehicle in the said country. Nissan is also expected to increase their presence in India in the near future.

Nissan announced that they will be specifically producing small cars for the country. This step is taken as the Indian auto market showed increasing growth. Even Ford, General Motors, and Volkswagen have expressed their interest in the country's auto market. With Nissan's dedication to sell small car in India, it is expected that the country will soon have its streets packed with Nissan vehicles with their and what not.

While Nissan and Renault have already joined hands especially in the Indian auto market, there are talks about including another partner to the alliance. Last year, the alliance had talks with the largest car manufacturer in the world General Motors. The talks though came to an end after both parties disagreed on how to bring General Motors into the fold of the alliance. In India though, both companies are looking for Indian car manufacturers to become their partner as they increase their presence at the fourth largest Asian car market. If all goes well for Nissan in their bid to expand business in India and if they succeed in producing smaller cars to cater to the demand of consumers, it is just a matter of time before the Japanese car manufacture achieved its sales goal.