Nissan Cuts Incentives, Lowers Prices To Catch Up With Rivals Honda, Toyota
Ren Benavidez | | Aug 08, 2014 03:08 AM EDT |
(Photo : REUTERS/Yuya Shino) The logo of Nissan Motor Co is pictured on a vehicle at the company's showroom in Yokohama, south of Tokyo May 12, 2014. Nissan Motor Co expects profit to grow at a slower rate than analysts forecast this year and an operating margin that would be the lowest of its compatriots, weighed down by the costs of aggressive expansion.
Honda's sales reached 739,400 from January to June, but Nissan surpassed the rival company's sales for the month of February and March.
Nissan U.S. sales for the first half of 2014 was 704,500 cars, which is 13 percent more than the units the company sold in the same period in 2013.
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The company's sedan, Altima, was refurbished for 2013 and received an overhaul for 2014. According to Edmuns.com, the sedan is the "new champ" in its line.
The Altima can be driven in the city or at a highway and go up to 40 miles per gallon.
In the line of crossovers, Nissan's Rogue is standing out among its competitors. It already sold 124,500 units despite only being released in November. Its sales during the past eight months already jumped to 17 percent, vaulting the Rogue ahead of Honda CRV and Toyota RAV4.
Nissan also made their cars more affordable. The company removed some of the incentives for buyers. However, they cut off the prices of their vehicles.
Automobile companies, such as Nissan, Honda, and Toyota, designs luxury vehicles, but their target market are those who belong in the middle class who cannot afford fancy cars. Carlos Ghosn, Nissan's CEO, said they plan on lowering the prices of their automobiles for 2014 to make it more affordable to buyers.
The company's plan to lower the cost and remove some incentives is creating a positive trend in its buyers.
The average price of a Nissan dropped 2 percent from US$29,110 to US$28,599 while the incentives dropped from $2,692 to $1,794 per vehicle, making the company's incentive at par with its rivals.
Tagsnissan, Honda, Toyota, cars, Ifo Business Climate Index
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