Business Report

Post-Rosslyn era: Nissan SA turns to imports to reclaim local market share

Willem van de Putte|Published
The X-Trail is Nissan's current flagship model in South Africa.

The X-Trail is Nissan's current flagship model in South Africa.

Image: Supplied

Nissan South Africa says it has completed its transition from a local manufacturer to a national sales company and is now turning its attention to rebuilding market share through an expanded range of imported models.

Speaking at the launch of the updated Nissan X-Trail, managing director Juan Wheeler said the first six months following the announcement that production would end at the Rosslyn plant had been focused on winding down manufacturing operations before attention shifted to new products.

"To be honest, the first six months after we made the announcement has been hectic," Wheeler said.

"To clean out the plant and hand that over has been a very busy period for all of us to get that done by the end of June."

With that process now complete, Wheeler said the company could focus entirely on its future as an importer.

"Now that those six months are settled, we can focus on our next step, from being a manufacturer to becoming a national sales company. Today is the first new product that we are bringing in, so now we can focus on the new products that we want to bring in for the rest of the year."

X-Trail flagship

Wheeler described the X-Trail as Nissan's current flagship model in South Africa, a position it will hold until the arrival of the Patrol later in the company's financial year.

"It's very important for us. At this point in time it's our halo vehicle, so it's the top model that we've got in the range."

He added that the model showcases the technology Nissan continues to offer while reinforcing the company's commitment to the South African market.

"We want people to see the technology that Nissan's improved, that Nissan is investing in Africa, and more importantly in South Africa."

Competitive pricing

The pricing of the new X-Trail places it firmly among established rivals as well as an increasing number of Chinese SUVs entering the local market.

Wheeler said competition had influenced Nissan's pricing strategy, but welcomed the growing number of brands competing in South Africa.

"We're open to competition. Any competition that we are getting in the market is good. It's obviously good for the customers."

Following the transition to a national sales company, Nissan reviewed its pricing strategy with the aim of attracting previous Nissan owners back to the brand.

"We wanted to have our legacy customers coming back that maybe have not bought Nissan or X-Trail for quite a while. Having a very attractive price and being competitive within the segment helps us."

The recently revealed Tekton SUV is currently undergoing final local testing ahead of its South African launch in the coming weeks.

The recently revealed Tekton SUV is currently undergoing final local testing ahead of its South African launch in the coming weeks.

Image: Supplied

More models on the way

While the Magnite remains Nissan's highest-volume model locally, Wheeler confirmed that several new products are on the way.

The recently revealed Tekton SUV is currently undergoing final local testing ahead of its South African launch in the coming weeks.

"As we are speaking, it is actually being tested in South Africa to make sure the final version that we are getting is fine. "

He added that Nissan would continue to price new arrivals as competitively as possible.

Navara coming from Thailand

Following the closure of Rosslyn, the Nissan Navara sold in South Africa is now being imported from Thailand.

He confirmed that the incoming Navara will remain the familiar South African model rather than adopting the Mitsubishi Triton-based version sold in some international markets.

The Navara Warrior, which was assembled in Rosslyn, will for now be off the cards, but Wheeler said that Nissan is investigating the possibility of bringing the programme back to South Africa.

"The Warrior is not a standard produced version. We are looking at how we can produce Warrior in South Africa again."

The updated Navara is also expected to receive technology upgrades aimed at making it more competitive in the increasingly crowded bakkie segment.

"There's a big update that will be coming. I don't want to give away too much, but it's going to be a lot more up to date."

The new Patrol has been approved for South Africa.

The new Patrol has been approved for South Africa.

Image: Supplied

Patrol confirmed

Nissan also confirmed that the new Patrol has been approved for South Africa and will arrive during the current financial year.

"Patrol will definitely be coming. We're just working through the final stages of when the right-hand drive market can get the product, so we are definitely on the list. The programme is approved, and it will be coming."

Rebuilding market share

Looking further ahead, Wheeler said Nissan's priority over the next three to five years is to rebuild its market share by introducing more products suited to South African buyers.

"The medium term is for us to launch as much product as possible for our market and get back to a decent market share again."

He said the decline in Nissan's market share over recent years was largely due to a lack of new products, something the company now intends to address through its renewed import strategy.