Wheels24

Nissan, Mitsu make minicar baby

2013-05-24 11:58

Nissan will start selling its first minicar jointly developed with Mitsubishi in Japan in June 2013 amid increasing demand for smaller, cheaper vehicles.

The Detroit News reported that Nissan began production of the minicar at one of Mitsubishi’s plants this week (May 20-24) and it will be badged as the Nissan Dayz and Mitsubishi eK Wagon.

GROWING MARKETS

Toshiyuki Shiga, chief operating officer at Nissan, said: “We've been involved from the development stage of this car so were able to make a minicar with Nissan characteristics.” Nissan will also continue to sell re-badged minicars made by Mitsubishi.

Kohei Takahashi, an analyst with JP Morgan Chase in Tokyo, said: “It’s important to introduce mini-vehicles if you want to expand in the domestic market. In Japan this is one of the very few growing segments.”

Still, margins are slim and automakers need to sell about 10 minicars to make the same profit of a car.