To Increase Market Share, Nissan Teana Will Be Assembled From Skd

By | January 17, 2018

Nissan Motors in India is planning to assemble the premium luxury sedan Nissan Teana in a semi knocked-down condition by the last week of February, 2011. The Indian subsidiary of the Japanese car manufacturer looks into capturing the domestic car market in its favor and is assembling the Nissan Teana model which is seen to reduce the price of the luxury car and later on, help attracting customers. As of now, the buyers pay almost 110 percent of the import duty of the cases which are shipped as completely built units.
Kiminobu Tokuyama, CEO and MD Nissan India, expressed that the company has thought of the available options to raise the volume of the car. For Nissan Teana, the company is opting for the semi knocked-down option. According to reports, the SKD will begin somewhere in the middle of 2011. The luxury sedan Teana is assembled at the companys Orgadan manufacturing plant of Nissan-Renault in Chennai. The plant is capable of producing 2, 000, 000 units but as of now, only 70, 000 units of hatchback Nissan Micra is being manufactured in the facility.
As of present, the Japanese auto manufacturer is shipping Nissan Teana, Nissan X Trail, the small utility vehicle as well as the luxury sports car Nissan 370Z as CBU from Japan. In India, the Central Board of Excise and Custom levies 60 percent of the import duty on cars which are shipped as CBU with a powertrain of 1500 cc. aside from the import tax, the buyers also have to carry the burden of paying for various other taxes such as countervailing tax, education and automobile cess which when calculated would sum up to 100 percent.
The Teana was launched in 2001 and since its release; it helped the company by selling 764 units in India. Nissan Motors has sold 170 cars of the luxury Teana until November of this year and about 207 units were sold in the previous year.
Nissan Motors is expecting to expand its portfolio by launching nine vehicles in the domestic market by 2012 as it has targeted a sale of one lakh cars annually. Among the nine vehicles in the planned launch, five will be manufactured in India and the rest of the four car models will be imported from the home ground.

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