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Nissan expects fleet sales high

Date: 09 July 2014   |   Author: John Mahoney

Nissan is on track for record sales, according to the company's managing director speaking at the recent X-trail launch in Portugal.

Jim Wright confirmed the brand will crack 150,000 sales this fiscal year - an increase of at least 12% over the previous 12 months.

Wright told BusinessCar that he credited the large increase on a growing economy, a "great line" of new products, and the resurgence of the firm in fleet, which with 14% growth is currently just behind its retail sales at 16% growth. 

Key to Nissan's success is the recently launched second-generation Qashqai that has been consistently in the top five best-selling cars in the UK, but Wright also said the new X-trail will also be a source of potential growth.

"The outgoing X-trail was long in the tooth and had become a 100% retail car. The new car offers a far more compelling story for businesses.

"The CO2 emissions are low, it has great RVs - even better than the Qashqai - and it looks great."

Wright said he expected sales in the first year to be around 6000 - with an unprecedented (for an X-trail) half being bought by businesses.

He added that the X-trail's seven-seat option will help steal sales from premium and sub-premium brands, as the Qashqai has done previously. 

But it's not all good news for Nissan's UK boss. BusinessCar has learned that the new Qashqai's popularity is taking its toll on lead times, with some fleet users reporting waiting times in excess of six months on range-topping Tekna models. 

Nissan fleet boss Barry Beeston confirmed there is a problem: "[We] had only expected a 10% take-up for the Tekna but demand has ended up triple that."

Beeston explained that the Qashqai's improved residual values has created attractive lease rates compared with the outgoing car while the Tekna appeals to those deserting premium brands.

"We realise that when we have the right vehicle we need the right lead times to go with it.

"We're working on improving waiting times and the factory is working at full tilt to satisfy demand. What we won't be doing is putting lease rates up to solve the problem," said Beeston.

He added that some fleets are instead extending contracts to buy time, and stressed that long lead times are only a temporary problem, with Tekna production at the company's Sunderland plant already having been ramped up.

Beeston also told BusinessCar that the success of the all-new X-trail will depend on educating fleets about its broader appeal, and confirmed that Nissan would be investing heavily on demonstrators specifically for the business market.



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