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Nissan Revives Fabled Datsun, But Only in India, Russia, Indonesia

Nissan Revives Fabled Datsun, But Only in India, Russia, Indonesia

By    |   Monday, 15 July 2013 10:59 AM EDT

Nissan's new Datsun was launched in India on Monday.

The Japanese automaker hopes the Datsun will fuel growth in the emerging market much like it helped win Western acceptance of Japanese autos three decades ago, The Associated Press reported.

The reimagined Datsun – a five-seat hatchback – will go on sale in India next year for under 400,000 rupees (about $6,670). It will also be sold in Indonesia and Russia, with the company saying its offerings will be tailored to each market in terms of price and size.

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In India, the English-language promotional website for the car describes it as the "badge of the risers," an appeal to aspirational first-time auto buyers.

"The drivetrain is designed specifically to suit the local environment, eliminating any stress or complexity for the risers to go forth," the website says.

Nissan Motor Co. is hoping the comeback of one of its defining brands will herald the same rapid expansion that the Datsun provided when it hit American showrooms more than 50 years ago.

The Datsun was discontinued globally starting in 1981 to unify the model lineup under the Nissan brand. Nissan also makes Infiniti luxury models.

Faced with stagnating sales in established markets such as Japan and Europe, most global automakers have their eyes on fast-growing developing countries that also include China, Mexico and Brazil.

Nissan CEO Carlos Ghosn said Monday in New Delhi that first-time car buyers in places like India want the best car they can get at a price within their reach.

"We are responding to that with the return of Datsun," Ghosn said.

India's population of 1.2 billion is a lure for automakers hoping to ring up big sales numbers, albeit with cheaper prices and lower profit margins.

But the Datsun enters the Indian market at a tough time. Sales of passenger cars fell by 10 percent in the April-June quarter from the previous year, according to the Society of Indian Automobile Manufacturers.

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Indian consumer spending has been hit by an economic slowdown and high interest rates that make car loans less affordable.

It is unclear whether or not the Datsun brand's durability and safety, which it is well known for in the West, will be embraced by younger consumers in emerging markets.

In 2012, Ghosn said the Datsun brand will retain its recognition, even among consumers in new markets who might not be as familiar with it, the AP reported.

Related stories:

Nissan to Revive Datsun Brand After Three Decades to Boost Sales

Nissan Recalls 841,000 Cars To Correct Steering Wheel Problem

Nissan Posts Slowest Profit Growth Among Japanese Automakers

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TheWire
Nissan's new Datsun was launched in India on Monday. The Japanese automaker reportedly hopes the Datsun will fuel growth in the emerging market much like it helped win Western acceptance of Japanese autos three decades ago.
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Monday, 15 July 2013 10:59 AM
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