Renault and Nissan have a global alliance and in India both companies keep re-badging each other’s vehicles. While Renault has re-badged the Micra as the Pulse and Sunny as the Scala, Nissan will do it’s first re-badge exercise on a Renault product with the Terrano. The Nissan Terrano, as you can see in the above sketch, is a re-badged Renault Duster.
So what is the advantage of re-badging a product while keeping everything else the same? Well for starters, Renault and Nissan don’t have to bring in new products and that saves them quite a bit of investment. Even though the Renault Duster and Nissan Terrano are the same under the skin, there will be at least Rs. 60,000/- price difference between both ($1100). For the extra price you get a vehicle that looks slightly better with more features (likely to be leather seats).
This strategy could lead to the dreaded cannibalization, but Renault-Nissan are happy as long as overall sales increase.
Faisal Ali Khan is the editor of MotorBeam.com, a website covering the automobile industry of India.