Nissan - Asymmetric Cube Concept

Add caption Automakers have now started to integrate electric energy into their car concepts to a greater extent, in a positive response to the rising concern on global warming. Japanese automakers have started taking keen interest in the same. Most of them, including Toyota, Honda and Nissan have vehicles that capitalize on this noteworthy objective. Nissan’s dedication to cars, powered by clean electric energy, is best reflected in its new car concept, ‘THE CUBE’. The cube can be seen as a perfect example of a temporary interruption to those tension-releasing “slow cars” from Japan. This concept car has an electric motor and lithium-ion batteries placed under the floor and seats. The most outstanding feature of the car is the absence of sharp edges due to the designer’s custom of a wavy design. The Cube is primarily known for its aesthetic appeal, wherein the rear window is cut asymmetrically to expand the rear view. The front side of the car is same as that of the other cars of Nissan but the rearside of the car is combined with the rear bumper. This has comprehensively helped Nissan to reduce its cost. Nowadays a consumer expects more comfort along with all the latest technologies and electronic features embedded in a car. Thus, referring to the above-mentioned reason, the manufacturers of Cube have installed standard equipments like Bluetooth, browser, access and keyless start, and rear parking camera. The rear bench has three positions for adjusting the backrest recline. This backrest is available in four attractive colors such as military strategist, White pearl, turquoise sea and bitter chocolate. There is a wonderful concept in the design of Cube Interiors. There is an indication that it will help depict the presence of Nissan throughout the world. This idea emerged by observing a droplet of water, by which the ‘ripple design’ came into existence. The interpretation is that, ‘The cube’ is a droplet of water sent from Japan that will spread all over the world. We can say that the model is very interesting and it realistically represents the spirit of the Japanese market. The price of this car in India is Rs. 7, 06,500/- and in U.S. it is $15,700, which is vey less as compared to the features and the comfort that Cube offers. The customers can get a pleasing and comfort ambiance inside the car which each and every customer expects. Nowadays almost each and every automaker is trying to design their cars in eco-friendly manner or they comply with the latest emission norms. Nissan Cube uses electric energy due to which there are very little or no chances of pollution. The other most outstanding advantage the Cube offers is its small size which I think is very important if we want to launch the car in the over-populated countries. Analyzing this innovative cube from both ergonomic and aesthetic points of view we conclude that we can design and manufacture this Cube on a large scale in the overpopulated and crowded countries like India, Japan, etc.

South Korean automakers grab the opportunity

The automobile crises that occurred during 2008-2010 severely affected the automakers in Europe and Asia and primarily left the American automobile manufacturers devastated with a very little or no demand for their products along with the rising fuel prices.

The US automakers were mostly affected in the recession over other auto manufacturers. As a result, the South Korean automakers who were not performing well prior to recession got an opportunity to overtake US markets when the recessionary pressures were mounting over the US. As a matter of fact, the sales of “Hyundai”, one of the leading car manufacturers of South Korea, drastically went up during the same period.

Thus, Hyundai, paving way for itself, successfully overtook “Honda” in 2008 and climbed up the ladder - from the 8th to 5th largest automobile manufacturer - in less than a decade. It also surpassed “Ford”, the world’s fourth largest automaker, post Honda success. Interestingly, Hyundai Kia (car) in 2008 was leading the car market showcasing a sharp increase in the sales while other automakers witnessed acute decline in their sales. Therefore, the sheer success of South Korean automakers gave a sense of discouragement to Honda, Ford and GM and they filed for bankruptcy as well.

So, the South Korean automakers turned this crisis into an opportunity by providing high quality and well designed vehicles to the customers. Besides, three fuel efficient cars viz, Kia Picanto, Kia Ceed and Hyundai i30 attracted a lot of attention from the customers around the world. Also, on the other hand, the fuel prices were overshooting and the environmental issues too were bothering the entire world.

Therefore, the luxury and SUV manufacturers from the US, Germany and Japan were found to be less in demand. Besides, the South Korean manufacturers also started working on improving their brand awareness followed by the introduction of the luxury vehicles such as Hyundai Genesis which received positive response and accolades.

Advantageously, in 2010, when the condition of the US markets stabilized, the US further grabbed a lead in the world of automobiles which was bound to rise in demand. So, we can say that this article stands as a learning lesson to the management students. They must find the alternate ways to reap the benefits associated with the first mover advantage. These kinds of learning lessons always help the management students who always look out for the opportunities to capitalize upon in order to make merry when the sun shines.

New budget affected the structure of automobile sector

The highest revenue generator for the Indian government is the automobile sector. The government earns Rs.25 billion annually in revenue from vehicle sales.  But, the new budget had adverse effects on the automobile sector. There is a bad news for all those who are planning to buy a new bike or a new car. Customers will have to pay more due to an increase in excise duties and registration charges. The excise duty on four-wheelers has increased from 10% to 60% and on two-wheelers from 30% to 40%.The road development and maintenance tax has also increased; ultimately increasing the cash outflow of the customers. The road maintenance tax, for four-wheelers, will be charged at 5% rate of the total cost of the vehicle, which initially was 2%. Likewise, two-wheelers will be charged Rs 6,000 annually.  The middle income groups are the ones who will be adversely affected by this steep increase in taxes, as they are the largest buyers of two-wheelers in the country. The automobile dealers have estimated the price of two-wheelers to increase by Rs. 15,000 to Rs. 17,000 which is a substantial amount while considering the middle-income group people. But the story doesn’t end there; the government has also increased the annual registration charges.   Now, all the four-wheelers fitted with 2000 cc engines and below will have to pay Rs. 16,500, up from Rs. 15,000. The vehicles which are fitted with 2001cc to 2900cc will have to pay Rs. 29,000, up from Rs. 25,000 and those with 2900cc will have to pay Rs. 44,000, up from Rs. 40,000. The two-wheelers fitted with 125cc engines and below will have to pay registration charge of Rs. 2,000, up from Rs. 1880; those with 126 cc to 250 cc engines will have to pay Rs. 3,500, up from Rs. 2,500 and those with 250 cc engines and above will have to pay Rs. 5,000.  As the excise duty has increased, the price of two-wheelers and four-wheelers has is bound toalso increased, . tThus making it difficult for the middle class people to buy a two-wheeler or even desire to shift to a four-wheeler. The iIndustry experts think that this is going to adversely affect the sale of both, two-wheelers and four-wheelers in the Indian market. This decline in sales is ultimately going to hit the government tax revenue. Today with the entry of the big automotive giants into the Indian automobile market, this budget comes as more of a disappointment of what was expected to change industry dynamics and set the wheels of the Indian economy moving towards prosperity again.