Business / Corporate

Nissan aims to boost light commercial vehicle sales by over 40% by 2022

Kyodo

Nissan Motor Co. said Monday it is aiming to increase its sales of light commercial vehicles by more than 40 percent by 2022 as part of its midterm business plan.

The carmaker said it is planning to boost its LCV sales to some 1.2 million units by 2022 compared to 850,000 in fiscal 2016.

The Yokohama-based carmaker’s medium-term business plan, “Nissan M.O.V.E to 2022,” covering the six years from fiscal 2017 was outlined last November, but at that time the firm did not elaborate on the target figure for LCVs.

The carmaker also said Monday it will launch a new model of its frame-based sport utility vehicle “Terra” in China this spring. It uses a “body-on-frame” construction method by which a separate body is mounted on a relatively rigid frame or chassis that carries the engine and drivetrain.

Nissan said its frame and LCV business unit, made up of frame SUVs, pickups, vans, and light-duty trucks, is seen as critical to achieving the company’s midterm plan objectives.

One in every six Nissan vehicles sold globally is a frame-based vehicle or an LCV, and the company said it is aiming to become a global leader in pickups and frame-based SUVs.

“Nissan’s frame and LCV business is seeing steady growth, and with our ambitious midterm plan and growing product lineup we’re confident that this growth will continue,” Ashwani Gupta, senior vice president for Nissan’s frame and LCV business, said in a statement.

The latest midterm plan is the first to be drawn up since Mitsubishi Motors Corp. joined the Nissan-Renault SA alliance, with Nissan taking a 34 percent stake in the company, in 2016.

Nissan will once again aim for an operating profit margin goal of 8 percent in fiscal 2022 after failing to meet the target under the previous business plan. The margin stood at 5 percent in the first half of fiscal 2017.

Under the midterm plan, Nissan also said it aims to boost sales to ¥16.5 trillion ($154 billion) from ¥12.8 trillion in fiscal 2016.