Nissan planning to axe Datsun brand

As part of its restructuring plan post the Carlos Ghosn era, Nissan is reportedly planning to pull the plug on the Datsun brand. 

According to Reuters, Nissan may pull the plug on its budget arm Datsun in the coming time. The news agency has reportedly spoken to two company insiders with the direct knowledge of the matter, and they suggested that it’s part of the firm’s restructuring plan, post the Carlos Ghosn pay scandal.

There’s no official word from Nissan as yet, but there’s a likely possibility of Datsun getting ditched soon. You see, the brand was launched back in 2013 to resurrect Nissan’s fortunes in the budget end of the segment in developing countries, including India, but it never really took off as expected. The Datsun brand has merely existed in India thus far with products like the Go, Go+ and Redigo, and they are struggling to find many takers in our market, to say the least. Currently, Datsun also sells products in Russia, South Africa, Indonesia and Kazakhstan. The company produces its vehicles majorly in India and Russia.

At the same time, it’s also rumoured that in some markets Datsun is eating into Nissan's sales, especially in markets where the group has a market share of one to two per cent. You could also say that it's the case in India too, where both the brands are suffering badly, thanks to their mediocre products, while the competition from the likes of Maruti Suzuki and Hyundai doesn’t make their life easy either.

More information should be out in the coming days, as we believe Nissan will release an official statement to throw more light on this matter.

Source: Reuters

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