With upgrades to the press and plastics shops, the St. Petersburg facility will produce five different models at the same time, including the Qashqai, Teana, X-Trail and Murano. The revived Datsun brand will also figure into the plans. Datsun is being ramped up in growth markets as a low-cost boutique product developed and produced locally to appeal to an emerging customer base.
For further details, check out the press release posted below.
- Further localization to support significant market growth -
St Petersburg Plant to double manufacturing capacity
Next generation Qashqai to be produced in St Petersburg for Russian market
Togliatti Plant to play main role in Datsun industrialization in Russia
Up to 80% of sales to be produced locally by 2016
MOSCOW (Russia) Monday 21st May - Today Nissan made a raft of major industrial announcements confirming plans for further significant localization within the Russian market.
The announcements, made by Nissan Executive Vice President Colin Dodge during a visit to Moscow, demonstrate Nissan's long term commitment to Russia and underline the company's plans to continue expanding its local presence within the market.
Nissan is targeting a 10% share of the rapidly growing Russian market by 2016 (up from 5.9% today) which will be achieved by tripling annual sales from the 2011 total of 161,000 units.
To support this, capacity at the St Petersburg Plant will double to 100,000 units in 2014FY The announcement follows last year's capacity increase at the plant which currently manufactures the Teana sedan, X-TRAIL SUV and Murano crossover, to 50,000 following the introduction of a third production shift.
Nissan will now invest a further €167 Mn to add 50,000 square metres of new production facilities, including Press and Plastics Shops. As well as bringing total plant capacity to 100,000 units, the expansion will enable St Petersburg to produce up to five different models simultaneously.
This will include the next generation Qashqai which will be built locally for Russia in St Petersburg, while Sunderland Plant will continue production of the popular crossover for other markets.
Nissan is also exploring further opportunities provided by its strategic partnership in Russia. The company recently signed a Memorandum of Understanding with Alliance partner Renault and Russian Technologies for the Alliance to increase its stake in AvtoVAZ - Russia's largest car maker - from 25% to over 50%.
As a direct result, Nissan can also confirm that the AvtoVAZ Plant in Togliatti will play a major role in the industrialization of the Datsun brand in Russia.
In March it was announced that Nissan will launch Datsun initially in high-growth markets, including Russia, to fulfill the unmet needs of a growing number of customers through exciting, locally developed and manufactured products.
The brand will play a major role in the company's business expansion plans in Russia, where it is anticipated Datsun could contribute up to a third of Nissan's total sales.
Colin Dodge said: "Russia is Nissan's largest European market and is going to grow significantly in both size and importance over the mid-term, and could account for around a third of our overall European sales by 2016.
"Nissan already has a very strong local presence and, today, we are the largest Japanese car maker in Russia and one of the largest overseas brands, but we want to triple sales and double market share over the next four years.
"To achieve this we are going to continue placing the customer at the heart of everything we do by offering innovative, relevant models that, increasingly, are developed and produced within the market."
By 2016 up to 80% of Nissan's sales within Russia will be manufactured locally, ensuring the model range will fully meet customers expectations in terms of quality, choice and delivery lead time.
In FY 2011 Nissan achieved 161,000 unit sales in Russia representing a massive 57% increase on 2010. From early next year, Nissan will compete in the mainstream segment for the first time following the launch of the all-new Almera sedan.
The car, which will be produced locally in Togliatti, was developed specifically for the Russian market and will offer outstanding value, unique Japanese design, interior space not previously available in this market sector and world-class quality.
Nissan in Russia
Russia is Nissan's largest single European market and is a key focus for expansion under the company's 'Nissan Power 88' mid-term plan. Nissan is already established as Russia's top-selling Japanese brand and currently holds 5.6% of the overall market. Last year St Petersburg plant's 1600 -strong workforce produced more than 43,000 X-Trails, Teanas and Muranos for sale within Russia.
Nissan in Europe
Nissan has one of the most comprehensive European presences of any overseas manufacturer, employing more than 14,500 staff across locally-based design, research & development, manufacturing, logistics and sales & marketing operations. Last year Nissan plants in the UK, Spain and Russia produced 677,000 vehicles including mini-MPVs, award-winning crossovers, SUVs and commercial vehicles. Nissan now offers 24 diverse and innovative products for sale in Europe today, and is positioned to become the number one Asian brand in Europe.