Soon after announcing ambitions to take production capacity in
the Americas past 2 million units in 2014, automaker
Nissan Motor Co. Ltd.
) is vying for the top spot in Light Commercial Vehicles (LCV)
market by 2016. Nissan does boast a strong LCV portfolio, ranging
from mini-LCVs to 7.5-ton trucks, which may help the automaker
achieve its target. Other factors that should help include
foraying into new markets, strategic collaborations and growth in
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Pushing the Sales Volume
Nissan is optimistic about high sales volume in 2013, largely
driven by the new-generation compact van NV200, whose sales is
expected to touch 200,000 units by the end of fiscal 2013 (April
2013-March 2014). Nissan's LCV sales crossed the 1 million units'
milestone in fiscal 2011 and increased to 1.14 million units in
Nissan's LCVs are designed in a manner that satisfy customer
needs and fulfill the local requirements. The vehicles offer low
running costs together with best-in-class quality and
Power 88 Plan
Nissan's focus on LCV sales and production will support the
automaker in achieving its Power 88 mid-term plan. Under this
six-year business plan, Nissan expects to foray into new markets
and segments from 2011 to 2016. The company also has a target to
achieve 8% global market share with operating profit of more than
8% by fiscal 2016.
Nissan also plans to offer an electric version of compact NV200
named as e-NV200 from the beginning of 2014. The addition of this
zero-emission passenger car will expand the LCV portfolio .
2M Production in 2014
Moreover, in a bid to tap the growth opportunities the American
markets have to offer, Nissan is aiming to take its production
capacity in the region past 2 million units in 2014. The company
also wants to minimize the adverse effects of currency
translation. The boost in production is supported by enhanced
capacity at its U.S. plants and the new facilities in Mexico and
Nissan currently carries a Zacks Rank #1 (Strong Buy). Other
companies in the automobile sector that are worth considering are
Fuji Heavy Industries Ltd.
). Fuji and Volkswagen carry a Zacks Rank #1 (Strong Buy), while
Peugeot carries a Zacks Rank #2 (Buy).