Datsun budget brand is killed by Nissan

TOKYO -- Datsun, which was revived in 2013 as a low-cost emerging market brand, is dead in all but name after parent company Nissan pulled the plug on global production.

The last plant producing Datsun vehicles has ended production of the cars, less than a decade after former Nissan CEO Carlos Ghosn resurrected the brand with grand visions of mass volume.

The Chennai, India, joint venture operated by Nissan and its French alliance partner Renault, ceased output of the Datsun Redi-GO five-door subcompact in March, Nissan said.

The move closes a chapter on Datsun that once saw the brand’s vehicles produced and sold in Russia and Indonesia, in addition to India. Datsun output in Indonesia and Russia ended in 2020. Datsun cars were also sold in South Africa, among other select markets.

Winding down the brand was part of the Nissan Next revival plan unveiled in 2020. The goal was to focus on the company's core brands, mass-market Nissan and premium player Infiniti.

Datsun traces its roots to 1931. The name was used by Nissan for export markets including the U.S. and Europe. The Japanese upstart made a splash some five decades ago as the public face of Nissan with its badge on the first-generation 240Z sports car.

The Datsun name was dropped in favor of Nissan in 1983. The move was meant to fortify Nissan’s global corporate image. Dealers in the U.S. initially rebelled against the idea. But four decades later, a whole generation of Americans has grown up never knowing the brand.

Ghosn revived Datsun as an entry-offering in a bid to scoop up what was predicted to be booming business in emerging markets by using older alliance technology to create affordable cars for the new middle classes who might otherwise have bought second-hand models. Sales of the rechristened Datsun began in 2014.

At the time of the reboot, Japan’s Nikkei business daily said Nissan targeted global volume of 300,000 units a year. But sales never blossomed in line with optimistic forecasts.

Nissan could not immediately provide recent annual sales figures. But since Datsun’s reintroduction, the brand sold about 470,000 vehicles cumulatively over the years.

In 2021, sales in India alone dropped 40 percent to 4,296 units, according to LMC Automotive. In 2017, by contrast, the brand moved 40,443 vehicles in the subcontinent.

A Nissan source says the company is still debating what to do with the brand name. One option may be keeping it on tap for use someday as an emerging market electric vehicle brand.

In India, Nissan is shifting priorities to Nissan-branded models such as the locally built Magnite.

“For many thousands of owners worldwide, Datsun continues to provide an engaging driving experience, peace of mind ownership at the right price and great value,” Nissan said in a statement.

“As part of Nissan’s global transformation strategy, Nissan is focusing on core models and segments that bring the most benefit to customers, dealer partners and the business.”