R E V I E W   O F   O P E R A T I O N S :   A U T O M O T I V E

Domestic Operations


A full model change of the Leopard during the past fiscal year strengthened its position in the market for sporty and elegant sedans. The adoption of the VQ engine and the addition of an anti-lock braking system as a standard feature significantly improved driving performance.


Nissan's domestic new car registrations in the year ended March 31, 1996 increased 4.1 percent to 1,125,333 units as improvement in Japan's economy supported higher demand in the domestic auto market. Domestic production increased 5.5 percent to 1,676,947 units, while overseas production continued to rise.


The new 2-door Mistral, which is produced in Spain and exported to Japan, is highly agile and driveable, and has been well received among young customers.


In the past fiscal year, we strengthened our product line by executing full model changes for the Cedric/Gloria, Primera/Primera Camino, Terrano, Bluebird and Leopard. We also introduced a two-door model to the Mistral line, which is manufactured by NMISA in Spain and exported to Japan. The Avenir Wagon and Prairie, Caravan/Homy coach and van, Sunny, March and Skyline, among others, underwent minor changes. This successive introduction of new models contributed to a 0.4 percentage point increase in domestic market share to 21.8 percent, Nissan's first market share increase in the six fiscal years since the end of March 1990.


The full model change of the Avenir Wagon during the past fiscal year strengthened this model's aesthetic and practical appeal. For example, the entire suspension system is housed under the floor, allowing a flat floor that together with the extended length of the luggage compartment results in generous cargo capacity.


Technological developments included a new torque split 4WD control system for the new Terrano. This system provides optimum control over the drive torque split to the front and rear wheels under all types of operating conditions, and provides excellent cornering performance in rear-wheel-drive mode and high stability in the 4WD mode.



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