Nissan Reports Strong Orders For Latest Minicar As US Market Opens Up

Nissan Motor is hoping its smallest vehicle can help spark a big recovery, with its latest minicar selling well and giving it a headstart against Chinese competition at home, while President Donald Trump is encouraging the introduction of such cars in the vital U.S. market.

The struggling Japanese carmaker announced on Monday it had received more than 20,000 orders for the latest generation of its Roox kei minicar, the first model it launched after unveiling a radical restructuring plan in May. The vehicle will serve to counter a move by China's BYD into the popular category in Japan and strengthens Nissan's ability to expand in the US.

"The number of orders is very strong and positive," Nissan Chief Marketing Manager Keiko Kondo said, as the company reported orders that opened in mid-September had reached 22,000 by Dec. 1. According to data from the Japan Light Motor Vehicle and Motorcycle Association, Roox sales numbered 7,741 in November, up 43% from October and 41% from the same month last year.

Kei minicars are a Japanese category of vehicle that meets certain size and engine standards. It accounts for more than 30% of domestic sales, as the cars cope well with Japan's narrow roads and incur lower taxes, making them more affordable than larger ones. Prices for the new Roox start from around 1.6 million yen ($10,300).

The cars have appealing safety features, with the fourth-generation Roox boasting a wide-angle camera that eliminates blind spots.

Yuki Tanaka, chief product specialist at Nissan, said, "You've probably had a moment of panic when you come out of an alley onto the street and can't see clearly to the left or right. The camera helps with that."

Nissan is also aiming to attract female drivers with small kids, offering plenty of storage for a smartphone, tissue box and other items around the front seats of the Roox, and easy access and space created to the rear to care for a child in the back seat.

As part of the Re:Nissan restructuring efforts to improve development efficiency and reduce production costs, the latest Roox was developed with alliance partner Mitsubishi Motors. Shinichiro Irie, program design director at Nissan, explained that around 70% of its parts were the same as Mitsubishi's Delica Mini, its sister model. The companies have given them different exteriors, interior designs and functions.

Both are preparing to take on BYD's kei minicar, due to launch in the Japanese market around next summer. The Racco, unveiled at the Japan Mobility Show in October, is BYD's first model designated exclusively for an overseas market, but the Chinese automaker has yet to disclose prices, battery capacity or range.

Nissan's Tanaka said that while BYD's entry would increase competition, "the growing awareness of EVs in Japan has a positive side which helps expand the [EV] market." Nissan also has the Sakura kei electric car in its lineup and is launching a new Leaf EV, the world's first mass-produced electric vehicle.

Trump created an unexpected opportunity for Japan's kei cars last week. Speaking at the White House, he said he had seen them on his recent trip to Japan, South Korea and Malaysia.

"They have a very small car ... They're very small and they're really cute, and I said 'How would that do in this country?'"

The president added, "But you're not allowed to build them and I've authorized the (transportation) secretary to immediately approve the production of those cars." He stated the names of "Honda, [and] some of the Japanese companies" as major players.

While U.S. demand remains uncertain, introducing kei cars could expand the market and give added momentum to production cooperation between Japanese automakers there.

Nissan President and CEO Ivan Espinosa said in an interview with Nikkei Asia last month, "We are talking about how we can collaborate in the U.S. Is there any opportunity for joint product development or for powertrain development?" Mitsubishi President and CEO Takao Kato also stated he was considering manufacturing vehicles in the U.S. with Nissan and Honda Motor. They are all major kei minicar makers in Japan.

Source: Asia_Nikkei