Nissan to tailor India EV plans after studying speed of adoption, consumer wants

Nissan Adopts Cautious Stance on EVs in India

Nissan Motor Corp is taking a measured approach to electric vehicles in the Indian market, emphasizing the importance of letting consumer demand guide its strategy rather than forcing new technologies. A top executive highlighted that pushing EVs on buyers isn't the right path, especially when petrol and diesel vehicles still hold about 96 percent of the over 4.4 million annual car sales in the country. Electric vehicles, though growing quickly from a small base, make up just around 4 percent of the total industry right now.

This strategy comes as Nissan studies the speed of EV adoption and what Indian customers truly want before committing to major rollouts. The company believes market dynamics should dictate when eco-friendly options enter the scene, ensuring they align with real needs. Instead of rushing into pure EVs, Nissan is exploring various green alternatives suited to local conditions, though details remain under wraps for now. This thoughtful planning reflects a broader commitment to delivering vehicles that resonate with buyers in a competitive landscape.

Expansion Plans Focus on High-Demand Segments

Nissan is ramping up its presence in India with concrete steps to capitalize on the nation's booming economy and status as the world's third-largest passenger vehicle market. The company aims to launch three new vehicles within the next year, building a portfolio of four products targeting the popular price range of Rs 6 to 20 lakh. These include models like the Gravite, a seven-seater B-MPV, the Tekton, a C-SUV, and a seven-seater C-SUV, all aimed at fast-growing segments that appeal to families and urban drivers.

Recent visits by senior leaders, including three trips in the past month, underscore the urgency of these reviews and the potential Nissan sees in India's stability, innovation, and diversity amid global geopolitical tensions. The Gravite, for instance, is set for an early launch and will be made locally in Chennai, helping keep costs down and supporting the Make in India initiative. Such moves are part of Nissan's global Re:Nissan Recovery Plan, which has streamlined operations by reducing its manufacturing plants from 17 to 10 worldwide, allowing sharper focus on high-volume markets like India.

"I want to make sure when we bring a technology to the market, it has what the customers wanted. EV is 4% today of the total industry. What is more important for us and for consumers is to bring cars, like the Gravite, like the Tekton, like the seven seater C-SUV, that are fast growing segments," said Thierry Sabbagh, president for Middle East, KSA, CIS and India at Nissan.

Broader Context of India's Auto Market and Nissan's Strategy

India's passenger vehicle sector continues to expand impressively, drawing global automakers eager to tap into its growth story. Nissan views this as a prime opportunity, prioritizing internal combustion engine vehicles in profitable segments over an aggressive EV push for now. This aligns with current market realities where charging infrastructure lags and affordability remains key for most buyers. By focusing on SUVs and multi-purpose vehicles that match everyday needs, Nissan aims to build loyalty and volume before diving deeper into electrification.

The company's global transformation efforts, including cost-cutting and partnerships, position it well to invest in India-specific innovations. While hybrids and other eco-options are on the radar, the immediate emphasis is on vehicles that drive sales today. This customer-first mindset could help Nissan regain ground in a market where rivals are already making strides with diverse offerings. Overall, the plan signals confidence in India's long-term potential while navigating short-term challenges wisely.

In summary, Nissan's tailored approach to EVs, combined with ambitious launches of popular models like Gravite and Tekton, positions the brand for resurgence in India. By prioritizing consumer wants and market realities, the company seeks sustainable growth in one of the world's hottest auto markets.