Datsun gets ready to go with redi-GO

The first Hindi word that Guillaume Sicard picked up nearly six years was ‘jugaad’ courtesy his boss, Carlos Ghosn, CEO of Renault-Nissan.

Roughly translated, it means low-cost, innovative thinking which perhaps puts in context the launch of the Datsun redi-GO earlier this week. At ₹2.4 lakh (ex-showroom, Delhi), it is the most affordable car in India today though Sicard, President of Nissan India operations, would much rather not dwell on this aspect alone.

And what could ‘jugaad’ have to do with Ghosn? Well, it was he who first took notice of the Tata Nano’s competitive price tag and decided this was the way forward for Renault-Nissan. This was what prompted the creation of the ultra low-cost car project along with Bajaj Auto which did not quite work according to plan.

Yet, Ghosn remained a firm believer of frugal engineering and this faith has been borne out with the Renault Kwid launched last year at ₹2.57 lakh and now Datsun redi-GO from the Nissan stable. And while the price is nothing to scoff at, Sicard reiterates that the most important part of this car is the overall value package.

“If you look at its design, space, safety and then the price, it puts things in a larger context. The strategy was to offer maximum value,” he says. This also explains why the redi-GO’s brand building effort focuses on youngsters, lifestyle, self-assurance and a spirit of freedom.

Sicard readily concedes that Datsun is not on top-of-mind recall which means there is a need to create/boost awareness. Hence, even if a group of potential buyers has ₹2.5 lakh each to spend on a car, only 15 per cent will think of Datsun.

“We therefore need to focus on good advertising and spread the word about this Japanese brand that has launched a car at this price,” he says.

Nissan has pulled out all stops to design the car to cost without making any compromises. “We know that this price will help us become extremely competitive and we can accelerate the growth of the market,” says Sicard. In the process, he is hopeful that more and more two-wheeler owners would be tempted to graduate to this car. This was what Ratan Tata had envisioned for the Nano except that the cheap car tag destroyed its growth prospects. No wonder then that Sicard is keen on driving home the value proposition message instead.

The Maruti Alto is, of course, the leader in the entry-level category with monthly sales of 20,000 units. The Kwid has got off to a dramatic start too and this gives Nissan the confidence that the redi-GO has the potential to do well too.

Despite this, Sicard is aware of the market realities. “What is unique about India is tradition. Here, we actually trust what has been done with the previous generation in terms of heritage and so on,” he says.

The reference clearly is to Maruti whose brand loyalty is staggering thanks in part to its decades-long stint.

“A lot of people will go for a certain brand because it is traditional. It might not be the best for their tastes but it boils down to tradition which I completely respect,” says Sicard. The challenge, therefore, is to show that a “new tradition is possible” by way of an alternative. This is where the positioning of the redi-GO becomes critical. After all, the last two years of Datsun in India has been little to write home about even while valuable lessons were learnt on what the customer really wants.

This is why Nissan is focusing on building its dealer network which could reach 300 in the next few months. Likewise, initiatives have been taken for maintenance and repair with MyTVS in the south where the present tally of eight facilities will grow to 30 shortly. There are also Datsun Mobile vans operating in Tier 2/3 cities as part of the sales and service effort.

“It is not the kind of network that can compare with the top player in India but we will ramp up and constantly communicate through TV, print and digital,” says Sicard. In short, the new offering has its work cut out in rejuvenating the Datsun brand.

Good numbers will help in optimising plant capacity at Chennai where the Kwid and redi-GO will be produced. “We are alliance partners but while we are buddies in the kitchen, we are fierce competitors once we are out there in the open,” he says.

What is not entirely surprising, though, is that the Renault brand has much higher awareness than Datsun. According to Sicard, people see Datsun as a brand which is like a startup with a lot of energy and movement. “People believe in us and yet wonder what we are up to which makes the startup analogy appropriate,” he says.

And while there is no immediate plan to go solo on retail with Nissan and Datsun, it still remains the best option going forward.

“We need to raise both brands in the same house and when we feel that they are sufficiently mature they can have their own homes,” declares Sicard.