Nissan Plans To Make Compact Cars In Thailand

[george]

Nissan plans to make compact cars in Thailand

BANGKOK: -- Nissan Motor Co, Japan's second largest motor vehicle maker, said it will make compact passenger cars in Thailand to boost sales, as surging fuel costs dampen demand for its vehicles in South-East Asia's biggest market.

The new passenger car was part of Nissan's plan to spend 29 billion baht (US$700mil) to expand production capacity at its plants in Thailand, Nissan chief operating officer Toshiyuki Shiga told a press briefing here yesterday. Shiga declined to say when the new model will be introduced.

“The new compact car will be very important for Nissan to turn around sales in Thailand,'' Shiga said. “We have to appeal more to customers with high fuel-efficient cars because rising fuel prices made customers more cautious with big cars.''

Nissan is losing market share to Toyota Motor Corp, Thailand's biggest vehicle maker. Nissan, which sells Sunny and Teana passenger cars and Frontier pick-up trucks in Thailand, had sales of 17,410 vehicles in the first five months, a 7% decline from a year earlier, according to data from Toyota Motor (Thailand) Ltd, which compiled the figures for the industry and government.

Nissan sales were 6.2% of total new car sales during the period, compared with a market share of 7.3% in 2004.

Nissan would also introduce a new, more fuel-efficient pick-up truck model to boost sales, said Shiga. About three of every five new vehicle sales in Thailand are one-tonne pick-up trucks.

-- Bloomberg 2005-07-07

[Khun Larry]

NISSAN: THAI KNOW MORE THAN YOU ABOUT CARS. THIS IS THAILAND, WE KNOW EVERYTHING ... ONE SIZE FIT ALL!!

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From BKK Post:

'Eco-car' size limits upset Nissan

Official rules clash with export needs

SANTAN SANTIVIMOLNAT

Nissan Motor Co, Japan's second largest automaker, has voiced disagreement with the government's policy to fix the dimensions for fuel-efficient small cars.

Instead, authorities should give the carmakers flexibility in setting the dimensions of the vehicles, a top Nissan executive said.

A proposal to raise excise taxes for one-ton pickups to offset lower taxes charged on fuel-saving small cars, or ''eco-cars'', was also potentially hurtful for the sector.

Toshiyuki Shiga, the chief operating officer of Nissan, said the company supported the Thai government's policies to encourage production of eco-cars, but was concerned about the size specifications of the vehicles.

''Nissan, so far, has no products to match the size specification, so it will not be able to participate in the project. Even the Nissan Mica and March, which are Nissan's smallest models, are still larger than the specified car dimensions,'' he said yesterday in Bangkok.

Pending final approval from the government, authorities have proposed that the eco-cars be a maximum 3.6 metres long and 1.6 metres wide and have engines that are capable of using E20 fuel. The cars must also have a fuel-consumption rate of one litre per 20 kilometres.

Nissan would have to invest a substantial amount of money to develop an eco-car model, Mr Shiga said, adding that the fuel-efficient cars would need to be manufactured for both the domestic and export markets to justify the huge investment in their development.

In addition, he said the size specifications of the cars should be set by the market in order not to hurt their export potential.

He noted, however, that Nissan was keen to participate in the project because eco-cars consume less fuel and were environmentally friendly.

Fellow-Japanese carmarker Toyota also voiced concern over the set size dimensions of the eco-cars.

The company's president, Ryoichi Sasaki, said that the restrictions would hinder the flexibility of the carmakers in developing the cars.

He added the manufacturers should be given the flexibility to match the size of the eco-cars with the varying needs of consumers.

In a related matter, Mr Shiga also pointed out the government's plan to raise the excise tax on pickup trucks would inhibit production and lead to lower output of such vehicles, a negative development since pickups over the years have become the flagship product of Thailand's automobile sector.

He added, however, that Nissan's 29-billion-baht project to make Thailand one of the company's global production hubs especially for pickup trucks was moving forward.

And Nissan is not deterred by the oil crisis. ''Our investment plan had not changed. We have no plans to delay the project despite Thailand's slowing economy and rising oil prices,'' he said.

''We believe Thailand has strong economic fundamentals, and have confidence in the Thai government's ability to guide the economy.''