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Analysis

Nissan's 2016 Journey

Thu, 09/01/2016 - 10:14

When several factors come together that boost performance, it equals success. For Nissan Mexicana, its successful 2015 was built on the back of a long-term strategy that included constant innovation, quality customer service and focus on consolidating the brand in the Mexican market. It registered 19 percent growth in 2015. Continuing that success is now the goal, and the first quarter of 2016 showed early promise.

Nissan’s 2015 sales of 347,124 units for the year helped the company achieve a 25.7 percent market share. From January to July 2016, Nissan sold 214,138 units, or 13.2 percent more than the 189,136 units sold in the same period in 2015. Should this trend continue, Nissan would easily surpass last year’s total. Nissan Mexicana is also the top-selling brand in the country, selling 50,000 units more than its closest competitor, GM, during the first seven months of the year.

Mexico is dominated by compact vehicle sales so it is no surprise that Nissan also leads this particular segment. The Nissan Versa is the top-selling model not only in this segment but in the entire light vehicle industry. In July 2016, Versa sales almost doubled the units of its trailing competitor in the compact segment. Regarding light vehicle sales throughout the year, Nissan Versa led the market in the first half by more than 9,000 units.

The SUV segment is also dominated by Nissan with the X-TRAIL model leading the way on a 19.2 percent sales increase in January-July 2016 over the same seven-month period the previous year. Out of Mexico’s 10 most-sold vehicles, five are produced by Nissan.

Nissan also leads Mexico’s vehicle production. From January to July 2016, the company manufactured a total of 489,802 units, which translates to 3.6 percent more than what was produced in the same period in 2015 and 100,000 more than GM. Nissan manufactures 11 different models in its Mexican plants. It began production of the new Nissan Kicks crossover in August 2016. Aguascalientes plant A1 will be responsible for the Kicks’ global production and will have an integration of local components of almost 90 percent. The Nissan Kicks will be first introduced in the domestic market and South America, progressively moving into more than 80 countries. The Kicks will participate in the SUV segment and are expected to help Nissan reaffirm its leadership over this segment.

Nissan has two models among the five most-produced in Mexico. During the first seven months of 2016, the Versa registered a production increase of almost 30 percent compared to the same production period in 2015 and it is now ranked as the fourth most exported model in Mexico. Between January and July 2016, the Versa registered an increase of 22.5 percent of exported units over 2015’s figures.

Nissan Mexicana’s main export destinations are the US and Canada, sending them more than 230,000 units between January and July 2016. It is the OEM that exports the largest number of light vehicles in the Mexican industry and the second largest exporter when combining light vehicles and trucks. A company with a Japanese origin, Nissan has become the Mexican face of the automotive industry