Nissan plans to bring Teanna and Xtrail as CKD

Nissan after innaugrating manufacturing unit in Chennai with Renault is eying to bring down Teanna and Xtrail as complete knocked down units to reduce the cost. It is pretty clear that Nissan now wants to be a volume player in India rather than niche player.

Nissan and Teanna both are available as completely build unit (CBU) for which it has to pay 110% tax while CKD attracts only 10% tax.

 
Gilles Normand, corporate vice-president, Nissan Motor Company (India, Africa and Middle East Region), said, “We are considering the possibility of producing or locally assembling Teana and XTrail in India soon.”

Ghosn had said in a conference in Chennai this week, “Last year, we sold around 200-300 cars only. You cannot sell cars in India at a lower cost when you import them. Importing cars will make us a niche car manufacturer and never a full-fledged player, and to become one we have to manufacture, source products locally in order to meet local needs.”

According to a source close to the development, the cost of Teana will come down from Rs 25 lakh at present to Rs 18 lakh and an almost similar price reduction of 28% would take place in XTrail as well.

Teana competes in the lower end of the D segment, which has cars like Toyota Camry (Rs 24-22 lakh), Skoda Superb (Rs 18-25 lakh) and Honda Accord (Rs 26 lakh).