Teana, X-Trail will be assembled in India
Nissan will begin CKD assembly of the Teana and X-Trail in Chennai
Nissan’s flagship luxury sedan, the Teana, will be assembled at their Chennai facility before the end of the year. Currently, Nissan imports the Teana as a completely built unit (CBU), which has caused it to be priced out of the range of its natural competitors such as the Honda Accord and Skoda Superb. Obviously, this has affected its sales adversely.
Considering that the Indian market is growing exponentially across most segments, it made a lot of sense for Nissan to assemble the car here in India, which would save a lot in terms of taxes and duties, thus pricing the car far more competitively. The Chennai plant’s capacity will also be better utilised this way.
Nissan sources say that the assembled-in-India Teana will be as much as 25 to 30 per cent cheaper than its current price. Its combination of style, luxury features and smooth V6 engine does make it a very compelling proposition, one which was hampered by the exorbitant price tag. Expect that to change now.
The SUV, X-Trail, which was Nissan’s first offering in India, will also be assembled in Chennai. The X-Trail shares a lot of its components with Alliance partner Renault’s Koleos, which is set for an Indian debut early next year. The cost rationalisation and vendor volumes will go up considerably, which make for a win-win situation for Renault and Nissan. However, while the X-Trail will become cheaper, it will still not enjoy as large a price reduction as the Teana for the simple reason that as a product, this Nissan has carved out a niche of its own as a comfortable, well-equipped mid-size SUV. It has a staunch following.
