Datsun explores low-cost SUV, crossover and sedan, but safer ones

Nissan-owned small car maker Datsun is planning three more vehicles in the sub-four lakh category – a sports-utility vehicle (SUV), a crossover and a sedan, to attract buyers in the low income groups.

Nissan-owned small car maker Datsun is planning three more vehicles in the sub-four lakh category – a sports-utility vehicle (SUV), a crossover and a sedan, to attract buyers in the low income groups.

Datsun already had three models – hatchback, crossover and a multi-purpose vehicle. “Datsun’s intention is to compete in the entry level, with different body types… We have a lot of flexibility with the platform. We can do what the customers want us to do,” said Jerome Saigot, V-P of Datsun India.

Saigot is talking about the CMF-A platform, which is also used to make Nissan-owned Renault Kwid.

The entry-level segment (22% of passenger car sales) for years had been dominated by Maruti Suzuki’s Alto and WagonR, until Hyundai launched Eon and Tata launched Nano.

Datsun wants to capitalize on India’s underpenetrated market – 30 vehicles for every 1,000 people. “There is very little choice in the sub-three lakh category. We will bring products for those customers who have not been served for years,” said Saigot, adding that the entry segment is competitive and becomes difficult to multiple body types.

In the next three years, Datsun is aiming 60% of Datsun’s sales – most of which is in cities at present – from tier-III and rural.

Datsun doesn’t want to disclose how much it spent on building the flexible platform.

However, Anil Sharma, analyst at IHS Automotive said that building a flexible platform can cost more than Rs 500 crore. “Bringing different body types is even less than 10% of the overall cost. But you need to ensure that each model looks different,” he said.

Saigot also said that the cars’ safety has been an issue and the company has taken steps to make the low cost vehicles safer. N-CAP, the European New Car Assessment program had given zero rating to Datsun Go.

So, Datsun introduced new features such as augmented brakes, reinforced protection shell, better view, superior suspension, and an adaptative power steering, to make the cars safer.