Nissan’s Yutaka Sanada aims to double its market share in Indonesia.
Globally, Nissan Motor Company is a predominant force in the automotive spectrum. Its alliance with Mitsubishi and Renault has made it the world’s largest car manufacturer. The combined sales of the three companies stood at 10.61 million cars last year, with Nissan being the largest contributor at 5.82 million units. In the case of Indonesia, the situation is in the case of Indonesia, the situation is not so rosy yet. The largest car market in South East Asia, Indonesia only recorded sales of 14,488 Nissan cars last year. The number is a fraction booked by the current market leader, Toyota, which recorded sales of 372,614 cars last year, and is far from the peak sales that Nissan recorded in 2012 with 67,143 cars. Nissan now aims to regain its growth momentum and market share in Indonesia by launching a product offensive and revamping customer experience. Indonesia, which sold over one million new cars last year, is an important market for the brand as other regions have already matured and offer less growth potential.
Yutaka Sanada, Nissan regional senior vice president for the Asia and Oceania region
“Nissan’s key focus of growth is Oceania and Asia. I have strong confidence that we can make it, the Indonesian market is very crucial and very important to our growth,” Yutaka Sanada, Nissan regional senior vice president for the Asia and Oceania region, says in an exclusive interview at the recent Gaikindo Indonesia International Auto Show (GIIAS) 2018.
At GIIAS 2018, Nissan launched the Nissan Terra, a premium mid-size SUV with a starting price of Rp 460 million. Indonesia is one of the top five markets to receive the vehicle immediately after the launch. The car forms part of Nissan’s product offensive that includes a revamp of its existing models. “In our product offensive we are putting core products in core segments. We don’t have a model like the Nissan Terra in this segment. It will be done incrementally as we renew some models in key segments. Naturally, it will expand the segment,” Yutaka says. According to him, as the mid-size SUV has already significant competitors with a market size that is not so big, the segment will grow gradually to become a significant market. “Nissan’s global presence in some markets is very strong. Naturally, I feel there is huge potential here and the region as well. So, we have confidence in doubling our presence in the coming years,” Yutaka says. According to Vincent Wijnen, Senior Vice President for Nissan Asia and Oceania, Indonesia will be the biggest market in the region in terms of volume.
Vincent Wijnen, Senior Vice President for Nissan Asia and Oceania
The Asia and Oceania regions are an important market for the brand as it has a fast-growing and relatively young population different to Europe or Japan. Nissan is also targeting younger customers by bringing more technologies into their cars. “Our vision is to provide products and services that meet those demands. Our cars should be enjoyable, environmentally friendly, safe, and connected,” Vincent says. According to Vivek Vaidya, Senior Vice President of Mobility at Frost & Sullivan, GDP growth rate and favourable demographics point towards a strong long-term growth rate. Indonesia is still considered a developing automotive market. According to the World Bank, the Indonesian ratio is 78 vehicles/1,000 people compared to Malaysia with 290 vehicles/1,000 people and Thailand 206 vehicles/1,000 people. The alliance plays a significant role as the brands collaborate on sharing platforms and components, making it easier and cheaper to develop cars. “We can reduce costs in ways that enable us to put more features in our cars,” Yutaka says. One example is electrification, which Yutaka says requires huge investment that can be offset by volume sales. “The alliance is a significant power,” he added. Nissan is one of the pioneers of electric vehicle (EV) when it launched the Nissan Leaf in 2010.
In the Alliance, Nissan aims to take the lead in the electrification domain. “We are proud to be the number one provider in this segment and we want to maintain this leadership. Electrification will also be a key differentiator,” Yutaka says. Increasing sales in the future also means that the brand must be prepared in terms of network and aftersales service. To that end, Nissan recently introduced a new network concept by way of its newest retail outlet in Bekasi, West Java. The opening was the next step in Nissan’s growth strategy through a new mid-term plan for Indonesia.
The new Nissan Retail Concept (NRC)
The new outlet has adopted the Nissan Retail Concept (NRC), which offers improved customer services within a globally consistent brand experience. Nissan Datsun Bekasi Barat offers customers a complete range of Nissan and Datsun models, including the new Nissan Terra and Datsun GO live Special Version. The total facility covers approximately 1,100 square meters, including a sales and workshop area with 10 bays. “We have a very concrete plan, which is to improve our service. One typical example is the Nissan Retail Concept, which enhances the standards of service at our outlets. With this I think we will improve our service to customers, this is on top of the product offensive and is a core part of our efforts to make our performance more sustainable. We are adding more resources to this domain,” Yutaka says. The dealership is managed PT Mimosa Putra Abadi (MPA), which has recently been appointed as the sixth official Nissan dealer partner in Indonesia.
As part of Nissan’s Customer Power and the company’s mid-term plan Nissan M.O.V.E to 2022, all Nissan-Datsun brand dealerships will be aligned with the Nissan Retail Concept, offering customers a convenient location for purchasing, leasing or servicing their Nissan and Datsun cars. The new retail design concept displays changes in all areas – from sales and service to financial services – to deliver the best possible experience to customers. The Nissan Retail Concept revolves around five key components: the iconic red Nissan tablet at the showroom entry and pylon creates a powerful and exciting brand identity; the exciting red “Nissan Drive” sign intuitively navigates customers through the Nissan brand experience and creates a sense of excitement; a variety of consultation areas for catering the diverse needs of customers; a premium cozy lounge to elevate customer experience; and an exclusive delivery area.
Currently, there are 105 Nissan-Datsun outlets operating across Indonesia. All existing outlets will gradually implement the new Nissan Retail Concept to improve every aspect of customer experience at Nissan dealerships. According to Yutaka, the brand is not so much focusing on number of dealers but on the quality of sustainable and consistent service. “We already have a manufacturing facility here and we plan to fully utilize it. Our industry is dynamic and significantly changing. So, we may consider some further enhancement in the future if significant demands require us to do so,” Yutaka says.