Datsunís third Indian model by FY16, to take on Marutiís Alto

Nissan Datsun GoNissan Datsun will mark its entry in India with the launch of the Go hatch (Rs 3-4 lakh segment) and GO+ MPV in India next year.

After Hyundai and Honda, Nissan's sub-brand Datsun now has its sights on India's top-selling car, the Maruti Suzuki Alto. Expected to be launched in 2015-16, Datsun's third model planned for India (code-named I2) will be in the R2-3 lakh entry car segment, multiple sources told FE.

The I2 will aim to sell around 8,000- 9,000 units a month in the mini-car segment ó Hyundai's Eon today has similar volumes, while segment leader Maruti's Alto sells about 20,000 units. Mini cars, the second-largest car segment, currently accounts for about 20% of India's 27 lakh passenger vehicle market.

Nissan Motor India vice-president (business management) Ajay Raghuvanshi confirmed, "First will be Go and Go+, then the third car is most likely another small car in the Alto segment which is huge. Everything will depend on the Datsun Go's reach, because this will decide the fate of the brand. It will be the first touch point of the brand and all our energies are on to make it successful in India."

Car market leader Maruti Suzuki, which has enjoyed dominance of the mini-car segment for long, is now seeing increasing competition in its stronghold. Hyundai, which had the ageing Santro, was the first major rival with the sharply-designed 'Eon' in 2011. Though General Motors also sells the 'Spark' in the segment with very low volumes of about 300 units, major competition is now also expected from Honda which is rapidly expanding its product range in the mass car segments. Honda is believed to be planning an entry hatchback below the Brio by 2017, for which it may build a new third plant.

Datsun, a Nissan sub-brand resurrected this year after 27 years for emerging markets like India, Indonesia and Russia, will mark its entry with the launch of the Go hatch (Rs 3-4 lakh segment) and GO+ MPV in India next year. But the third entry sedan model, that is due for launch in Russia, may not come to India, with Datsun opting for a second hatchback instead.

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