Nissan seems to be facing trouble with its remaining stock of old-model Rogues at dealerships in the US market. This is the C-segment SUV also known as the Nissan X-Trail in other markets. Specifically, despite nearing the end of Q1 2024, the 2023 Nissan X-Trail models are still piling up at dealerships. Meanwhile, the latest 2024 models have already started being delivered to US customers.
To address the inventory, Nissan has decided to apply a tried-and-true strategy of offering $1,000 rewards to dealerships for every 2023 X-Trail sold. However, this policy only applies to dealerships that meet sales targets for the Nissan X-Trail line. These sales targets can include both 2023 and 2024 models and vary by dealership. However, the reward will be based only on the number of 2023 models sold in March 2024.
Nissan hopes that this prioritized retail sales program will boost the sales of the X-Trail line, which is also the top-selling model in the US market for the Nissan brand.
In 2023, Nissan sold a total of 271,458 X-Trail units to US customers, ranking 9th in this market. Despite the surplus supply, the X-Trail accounted for one-third of Nissan’s total sales last year, a 46% increase compared to 2022. Furthermore, the Nissan X-Trail was the 3rd best-selling C-segment SUV in the US market last year, following the Toyota RAV4 and Honda CR-V.
With the reward policy, US dealerships may offer discounts on the 2023 X-Trail models to attract customers. However, according to Automotive News, discounting the older model to clear inventory puts dealerships in a precarious position. The reason is that when the 2023 model is discounted, it creates pressure on the 2024 Nissan X-Trail. This is highly likely because the 2024 model only offers slight improvements over the previous generation. Additionally, discounting the 2023 model will affect the liquidity of this C-segment SUV.
Nissan X-Trail 2024
This is the first time Nissan has launched such a large-scale sales promotion campaign focused on quantity since the Covid-19 pandemic. Meanwhile, Judy Wheeler, Vice President of Sales and Operations for Nissan North America, admitted that the company may have been overly optimistic about X-Trail sales.
“Perhaps we were too aggressive in production,” Wheeler told Automotive News reporters. “The market has shifted. There’s been a faster-than-expected increase in demand for hybrid vehicles“.
A Nissan spokesperson confirmed that the company does not intend to regularly offer such reward programs. Nissan may not consider turning this incentive policy into a long-term program. However, some dealerships still doubt whether this program will be extended beyond March. This program reminds people of the advertising tactics used during the years when Carlos Ghosn led Nissan to increase market share.
The remaining stock of 2023 Nissan X-Trail models at dealerships is enough to sustain sales for 112 days, about 40% higher than the market average in the US. In addition to rewarding dealerships, Nissan has also introduced a finance offer with a 3.9% interest rate and a 7-year term to clear the remaining inventory.
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