Profile: Infiniti

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Total sales 2013: 180,000    Headquarters: Hong Kong, China    Global market share: 0.2%

 

USA and China lead the way

Infiniti has undergone a series of structural upheavals over the last two years, from the relocation of its head offices from Tokyo to Hong Kong, to a complete overhaul of the model naming strategy. The aim of all these upheavals has been to increase the brand’s global appeal, and Infiniti now exports to a network of over 230 dealers and 15 countries worldwide.

Still a relatively low-volume manufacturer compared to other premium brands, Infiniti grew marginally in 2013, thanks largely to its success in the key markets of China and USA. Growth in these territories helped to counteract falling sales in Europe, which is a territory in which Infiniti acknowledges it still has some work to do to establish itself alongside leading premium brands such as BMW, Mercedes and Audi.

Infiniti launched into its key European market of the UK in 2009 at the height of the financial crisis, leading to a slower start than the brand would have hoped for. Infiniti recorded only 385 UK sales in 2013 – a downturn over 2012 figures and a disappointing figure for the brand. To the end of August 2014 however, Infiniti recorded a +35% uplift over last year at 377 units, with a predicted endof- calendar year total of over 800 cars, thanks largely to the success of the Q50 and a resurgence of interest in the QX70.

According to Steve Oliver, regional director for North Europe, Infiniti is on track to register 10% of its historic vehicle parc in September alone in the UK, such is the rate of change.

Infiniti has also engineered a 2.2-litre diesel engine for Q70 and a 2.0-litre petrol turbo engine for the Q50 in a bid to broaden the model’s appeal for the European market. Both engines are sourced from Daimler, with the updated Q70 diesel poised to make its European debut at the Paris Motor Show in October.

The USA continues to represent Infiniti’s leading market by a considerable margin, recording 42,924 sales to the end of August 2014. Q50 leads the way as the most popular Infiniti model with US buyers, followed closely by the QX60 Hybrid luxury crossover. Infiniti has a very strong profile in the States and is worth 120,000+ cars a year to the brand, bringing in similar sales to Audi, and creating a benchmark for how Infiniti aspires to perform in other territories.

China now represents Infiniti’s second biggest market after the USA, with sales of 14,000 vehicles in the first six months of this year, more than double the figure recorded in June 2013. This figure is expected to soar in November with the launch of the Q50L – a stretched variant of the Q50 designed to appeal to the Chinese auto market.

The brand also recorded a sales figure of 1,524 units across the Middle East in the first quarter of 2014 – a substantial rise of 31% compared to the same period last year and a response to the growing popularity of premium sector cars in the region.

 

View from the top

Steve Oliver, Infiniti’s regional director for North Europe, reveals how the brand plans to increase its sales share in Europe and what the expectations are for upcoming Q30. 

 

At the moment Infiniti has a relatively small share in Europe. How do you plan to grow in the region?

The key thing for us this year is getting the Q50 firmly established. It provides Infiniti with a car that is much more competitive, whereas previously cars have originated in America and been brought here.

Next year with the Q30, we will have a European and UK-built car which will be available in several different guises, helping us to cover a great deal of the C-sector and deliver something different. So the whole outlook, in terms of the partnership with Daimler which provides us with European diesel engines, is critical to our growth.

 

Can you outline the thinking behind the brand's re-naming strategy?

I think for people that have been with Infiniti for a while the change is a challenge, but for new customers it provides a consistent naming mechanism.

Now we have a clear-cut position and it is easier to visualise where cars fit into the range.

 

What are the expectations for Q30 in Europe?

I think Q30 will be massive for us; we’re envisioning Q50 representing over 40% of our sales, Q30 45%, and the other models will be delivering depth to the product. Our cars have fantastic CO2, great fuel economy and impressive running costs.

All of this will help us to really establish ourselves in the UK and European markets.

 

More to come globally…

As part of a strategy to capture 500,000 units globally by 2020, Infiniti plans to expand its product portfolio by 60% in the next five years, along with doubling the number of powertrains.

Models like the Infiniti Q30 Concept and powerful Infiniti Q50 Eau Rouge offer a preview of the brand’s new direction, and as Infiniti's global presence continues to expand, so does its manufacturing footprint with China and the United Kingdom joining production sites in the United States and Japan. In addition, leveraging strategic alliances – such as that with Daimler AG – will lead to collaboration on advanced research and development of key technologies and engines.

The 2015 Infiniti Q70 line-up expands with the arrival of new Q70L – a longwheelbase version of Infiniti's flagship sedan with additional 5.6 inches rear seat legroom. The new Q70L comes to market in late 2014, and is expected to perform particularly well in the Asian markets.

There is a palpable sense of excitement around the Q30 concept, with Steve Oliver, regional director for Infiniti North Europe, predicting that the Q30 could have the same impact for brand as the Qashqai had for Nissan.

Combining coupe, hatch and crossover design features, the Q30 previews the brand’s entry into the compact premium segment, and is designed to appeal to younger customers seeking an alternative to traditional premium C-segment options such as the A3 and 1 Series. The new model will be underpinned by the Mercedes MFA platform used for the A-Class and B-Class, with powertrains also being sourced from Mercedes, and will be produced in Sunderland in the UK from 2015.

Infiniti has also released a teaser image of its new Q80 Inspiration concept, which makes its debut at this year’s Paris Motor Show. The four-passenger fastback concept, said to foreshadow an audacious top-of-the-line model, has been designed for a “low-slung, ingeniously aggressive” look and is intended to “demonstrate to the premium world just how Infiniti aims to play its part.”

Unveiled at the Detroit Motor Show this year, the Q50 Eau Rouge concept provides the brand with a figurehead super saloon. The high-performance design concept is based on Infiniti’s Q50 premium sports saloon and draws inspiration for aerodynamic design from the technical collaboration between Infiniti and fourtime Formula One World Champions Infiniti Red Bull Racing. The model is not expected to enter production, functioning instead as a demonstration of the brand's engineering prowess.

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