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Datsun's lackluster initial sales fall below Tata Nano

When Tata introduced the Nano back in 2008, everyone was amazed at how cheap it was. They called it a game changer, but no game was changed. In fact, it took Tata five years to sell the 250,000 units it had the capacity to build in a single year. As it turns out, even buyers in what economists call "developing markets" like India aren't necessarily interested in buying an ultra-cheap automobile. And now it appears that Nissan may be falling into the same trap.
A little over a year ago, Nissan revived its old moniker Datsun to serve as a budget brand - similar to what ally Renault did with Dacia. Its lineup (consisting of models like the Go hatchback, Go+ minivan, On-Do sedan and Mi-Do hatch) is largely based on old architecture, packaged with little more than basic equipment and sold at rock-bottom prices. But Bloomberg reports that, even in the brand's core markets like India and Indonesia, the new Datsuns haven't been selling.
According to local industry figures, Datsun has sold fewer than 10,000 units of its $5,100 Go hatchbacks in India since its introduction back in March. Maruti Suzuki, by comparison, sells twice that many of its similarly priced Alto hatchbacks every month. In fact, after peaking in April, Datsun only sold 607 units in India this past July, dipping 77 percent to drop below even the number of Nanos which Tata sold that month.

Datsun expands low-cost revival with new Mi-Do in Moscow [w/video]

Those who were disappointed when Datsun changed its name to Nissan over three decades ago may have been pleased to see the marque revived last year, even as a budget brand. Nissan's counterpart to its ally Renault's Dacia budget brand, Datsun has been steadily expanding its lineup of low-cost transportation for developing markets with the debut of the Go hatchback in India, the Go+ minivan in Indonesia and the On-Do sedan in Russia. And now it has returned to Moscow to reveal its fourth model, the Mi-Do.
Based closely on the On-Do sedan (which itself is based on the Lada Granta) the Mi-Do takes on a five-door hatchback bodystyle but with no more frills. It uses the same front-drive chassis with the same wheelbase as the sedan, but its chopped tail makes it a good foot and a half shorter overall. Into that compact shape, Datsun has fitted dual airbags, ABS and... well, that's about it. It's got a 1.6-liter, eight-valve inline-four kicking out a grand total of 87 horsepower to either a five-speed manual or a four-speed automatic. Bare bones, this is.
While delivery of the first On-Do sedans commences next month (with the first example going to an IT specialist in Omsk), the Mi-Do is set to begin delivery early next year. Scope out the video and press release below from the Mi-Do's reveal at the Moscow Motor Show.

Renault planning a Tata Nano rival. Again.

Four years ago, Renault confirmed that it would partner with India's Bajaj Auto to develop a rival to the Tata Nano. At the time, as everyone waited for the Tata Nano to arrive, you could have used a Richter scale to measure the tremors the executive suites of any automaker with an interest in the low end of emerging markets. Then the Nano, still the cheapest car in the world, didn't sell so well - at the end of last year its sales were just six percent of its most conservative projections - and everyone seemed content to let Tata spend the money to figure out if there really was a market for the cheapest car in the world.
Renault believes there is, kind of. Automotive News Europe reports that it will partner with Nissan to build two low-priced cars for emerging markets, one for €3,000 ($3,888 U.S.) and another for €5,000 ($6,400 U.S.). The price of the least expensive offering is nearly $1,400 more than a Nano, which costs $2,500, and that can't be considered a small sum in comparison. But one of the hindsight knocks on the Nano has been that even in emerging markets buyers don't want a car whose biggest lure is that it is cheap; they'd rather give their aspirations a bit more of a workout.
Renault's offerings are scheduled to hit the non-Western market in late 2014, which is coincidentally the same year that will see the return of the budget-minded and emerging-market-specific Datsun nameplate. They'll be built in Renault facilities in Chennai, India, with no mention made of Bajaj this time around.