A Japanese automaker is considering introducing a new take on a classic model by producing a low-cost car that it will be featured in emerging markets and perhaps in the United States sometime in the near future.
In the beginning of the year, Nissan CEO Carlos Ghosn revealed plans that the Japanese auto maker was going to reintroduce its famed Datsun brand. The company would make those vehicles available in regions where low-cost vehicles are in high demand such as Indonesia, India and Russia.
The main point of the new cars will be the price tag. Starting at just $3,000, the new Datsun will be the most affordable car ever produced by a global manufacture.
Unfortunately, the new models will not be sold in the United States or other industrialized nations, but rumors are circling that should the sales of the car be strong, they would make the car available in those markets.
Nissan is banking on a new sales strategy that would fit appropriately with the rapidly increasing trend of low-cost vehicles within those countries. Should the company succeed with their new endeavor, they would be positioned to lead the low-cost car market.
There once was a time when Nissan led the industry with their brand Datsun back in the 1970s, but a decision to rebrand the line of automobiles was ultimately a bad one. When Nissan decided to end the Datsun line and produce vehicles under the Nissan name, sales dropped off sharply and they are only recently proving to be a dominant car brand.
Not all car companies are supportive of this new move to target emerging markets with a low-cost cars given that the car is more than just a machine, it is a social status symbol.
"To think cheap cars will sell in emerging markets is a big mistake,'' Yukitoshi Funo, Executive Vice President of Developing Markets for Toyota, told reporters in May. "Cars are symbols of family pride. They're for driving to a picnic on a day off."