ATSUSHI NAJIMA
President and Managing Director
NISSAN PHILIPPINES, INC.     By Bernie Cahiles-Magkilat ATSUSHI NAJIMA is leading one of the country’s fastest growing car companies – Nissan Philippines Inc. (NPI). Joining the automotive sector from a successful career in a global consumer goods manufacturer has provided him a good study of contrasts and similarities. Najima, who joined Nissan in 2016, brings with him in depth understanding what would drive further growth for his company in a country where opportunities abound for those who know and able to strategize. Appointed only this year as a country leader for the Philippines, Najima is ready for a great ride. GROWTH NPI was founded on September 23, 2013 as a joint venture of Nissan Motor Co., Ltd. (Nissan) and longtime partners Universal Motors Corporation (UMC) and Yulon Philippines Investment Co. Ltd. (Yulon). Nissan holds 51 percent stake in the company while UMC and Yulon each owns 24.5 percent of the outstanding and issued shares. On March 2014, NPI began operations as the sole national sales company for the Philippines unifying the Nissan brand under one umbrella. Since it began operations, NPI has become one of the fastest growing automotive companies in the country, closing fiscal year 2017 with a 38 percent growth versus the previous fiscal year. NPI has also spearheaded the aggressive expansion of its dealership network in key cities nationwide. The phenomenal growth of NPI was spearheaded by Najima’s predecessor Ramesh Narasimhan, who is now assigned in Thailand where he holds a bigger responsibility. Najima himself admitted that NPI’s growth last year was just phenomenal that sustaining it may be a bit of a challenge. But Najima is ready for the big challenge. He vowed Nissan will continue on to its growth trajectory although may be a bit slower than the phenomenal growth last year. “We are doing good and sustaining the momentum,” says Najima, who was the general manager in Nissan Motor in Yokohama before moving to the Philippines. He worked previously for P&G Singapore, during which time he was associate director, finance manager for Japan, and country finance manager for P&G Malaysia and Singapore. Najima holds some aces up his sleeve. For instance, he cited the very good market performance of Nissan Terra, a brand-new medium-sized sports utility vehicle launched in August last year. This model is expected to make bigger impact this year. “Terra’s performance is very good, almost 20-25 percent of segment share already,” says Najima, proudly. Terra is selling close to 1,000 units a month, making it to the top three largest in this segment and putting early comers Montero and Fortuner on their toes. He cited this family-sized diesel engine SUV for its very nice interior and exterior aesthetics. Terra, which is imported from Thailand, also boasts of superior safety features. Its competitive pricing is just an add on to Terra’s attractiveness. RECOVERY Terra’s introduction was timely as the medium-sized SUV segment is already recovering from the blow it endured with the implementation of the TRAIN Law, which imposes higher taxes on cars. The industry, as a whole, is also recovering after suffering 15-20 decline last year. The recovery, however, is still fragile at single-digit although the industry posted a very encouraging 10 percent growth in July. “This is a very positive sign so we are optimistic of a recovery this year. We will continue to monitor,” says Najima. NPI’s number one model is still its best-selling pick-up Navara, which accounts for roughly 50 percent of the company’s total sales. Terra is coming in strong in its line-up followed by Urvan and Almera. “We are very proud of Terra,” adds Najima stressing the need to further communicate the best attributes of this new product. To be fair, Najima said all its models are contributing to the company’s overall performance. Another product the company believes has good potential given the right support is Patrol, its luxury SUV model that accounts for 5 percent segment share. “Patrol has a very long heritage with more than 65 years of history in its own luxury category. It has also a very nice driving performance,” says Najima adding they are going to mount a campaign that is proper only for such a prestigious vehicle. “This is the first time we will make a significant campaign for Patrol in the Philippines. Hopefully, this model can contribute further to our growth,” he adds. Patrol is competing against the Land Cruiser of Toyota, but this Nissan product has a unique following and is priced a lot lesser. Patrol now retails at roughly P4 million. Its competitor accounts for 50 percent share of the product segment. So, if the market is 4,000 units for this segment and Patrol is selling 200 units or so only, this means there is enough room for them to capture. “This means we can do much better,” says Najima. “When I came in the past three months, I went to the dealers and talked to them. I personally drive all the Nissan products and review all our marketing plans and we’ve decided that we should do something about Patrol,” he adds. The fact that Patrol, which is largely owned and driven by men and used as executive cars, accounts for 5 percent share in its segment is something that the company should look into. Already, NPI has lined up media activities for Patrol to include test drive just to start the journey. “All we need to do is communicate the superiority of this product, its make and feel and the experience. Am sure they will love it,” he adds. CUSTOMER As the Nissan brand reclaimed its standing as the country’s third largest car company, Najima said his focus now is to continue what his predecessor had done. Foremost, Najima would like to focus on further strengthening the company’s customer service. This aspect is critical in ensuring success to its already formidable line-up. He noted they already got product superiority for all its models. What they need is to further communicate this to the market. This calls for further push for improvements in all of its dealership network around the country. This also means focus on customer relations and after sales service to provide a more improved customer experience. With superior products, after sales service and improvements in customer relations, Najima said these will all result in higher sales and ranking in the automotive industry. They have plans for new product launches but they are still looking for the right timing to introduce innovative technology for mobility in the local market. They just have to strengthen their communication to the maximize opportunities. “As of now we are focusing on customers, strengthening our fundamentals and product services and people,” he adds. Based on the latest survey, NPI is already number two in customer service in the Nissan Group. He called for the need to work harder to ensure better customer experience and align themselves with the global customer experience. For its nationwide presence, NPI has 44 outlets around the country. This number could further increase with additional 6-8 outlets this fiscal year depending on the opportunities. Najima would like to coordinate all efforts to become one team in the entire Nissan group, including the people from the dealers and their technicians. NPI has 110 employees and plans to hire more to handle functions especially in creating and implementing superior communication strategies to put their products at the forefront and provide better services for its growing business. So far, they have a good mix of 9 products in the local market. “This business of customer satisfaction is more critical,” adds Najima, a mechanical engineering graduate from the University of Tokyo and completed his Master of Business Administration at Kobe University. MARKET According to Najima, they have to balance the needs of the market. Some car firms are bringing in low-end models like small sedans. In the US, some car companies are cutting production for low-end and playing only in the high-end product line. “But the Philippine market is a summation of everything,” observes Najima. At present, NPI has a small presence in the sedan segment with Almera’s 5 percent segment market share. But the local sedan market is also shifting into bigger cars or the SUVs. “For me that is how we grow and how to serve customers where we can add value to clients, that is where we should play. We should bring innovation and service to be able to participate in the growth,” he adds. Innovation means bringing in products that provide new safety functions in driving, new technologies like its electric vehicle LEAF because it is an intelligent mobility and good for the environment. The Nissan LEAF was introduced in 2010 as the first mass-market pure electric vehicle launched globally. It continues to lead in zero-emission mobility. The LEAF is now the best-selling EV in history. LEAF is set for local launch next year although there is no exact date yet. There is no pricing yet also. What is important is for NPI to start educating customers about this new technology. “We already received lots of inquiries for LEAF so that also create lots of opportunities to communicate LEAF to the market,” he adds. NPI is also collaborating with the government and especially the young people to support this new electric car technology. “We are collaborating on how we can promote electric vehicles,” he adds noting they are working with some government agencies about electric vehicles, its benefits and challenges. “We have clear customer interest on LEAF,” he adds. Based on survey, the interest in the Philippines is higher than in other ASEAN countries in terms of purchasing LEAF. NPI has received a lot of questions from potential buyers. Perhaps, he said, the interest among Filipinos on LEAF is largely driven by the new technology. “I see a lot of passion,” he adds. Other car firms are also talking of bringing in their own e-vehicles but no one has come up with a more concrete announcement than NPI. SURPRISE Najima is not new to the Philippines. He used to be stationed here working for P & G before. In his second assignment in Manila, Najima said he was pleasantly surprised by the local food scene. “What is surprising is the number of ramen shops here,” says Najima. During his first assignment in Manila, he noticed 2 or 3 ramen shops only and there was nothing in BGC but now there are several. The building across NPI’s new office in BGC was like a jungle then. He also remembered lots of used cars and buses on the road. “I am very optimistic of the local auto market because the economy is doing good on strong fundamentals and then the population is still very young so there is this strong buying power,” says Najima citing the growing GDP per capita averaging $3,500. At this rate, analysts said this is the level where the age of motorization can start to pick up in a particular country. Najima, who has been with Nissan for three years but was with P & G for 18 long years, saw some similarities as well as contrasts between cars and the consumer goods business. He noted though that in the automotive business, they design for a five-year model life. This means the value chain creates a huge and very complicated manufacturing operation. In the consumer goods business, he said, the innovation could be for shorter application say 1.5 years. “I like both of them,” says Najima. He, however, noted that consumer goods have quicker impact and faster turnaround in two years while a purchase of a car is good for 5 years or longer. The car is also a big-ticket item so there is a direct impact on the pocket of the consumer while the consumer goods are of smaller value. But both have direct impact on the lives of people. COOL HEAD, WARM HEART Najima has only good words for his Filipino team calling them very energetic. This kind of attitude could be the main driver in the company’s continuing growth story. “They have this drive to serve better. I like this attitude of working together as a team,” he adds. This manager adheres to the principle of “cool head, warm heart” kind of management as he supports the careers of his staff. At Nissan, they grow their own people, not just for the local unit but also for positions in the region and elsewhere where there are opportunities for those who deserve. Nissan also offers training opportunities at their headquarters in Japan. Secondly, Najima espouses fairness and honesty in his organization. “If we want sustainable growth, I want to be fair and honest because we need to accept some realities,” he said. Third, he is a visionary. He sets long term vision for growth and implements strategies and decisions on what they can do today and tomorrow to achieve the goals they have set. Even if he is the boss, Najima would like to hold dialogues with his staff to come up with decisions based on consensus. Lastly, Najima walks the talk. He likes to visit his dealers because they are the frontline officers. He needs to listen to the feedback from people on the ground whether it is good or bad for him to see the realities on the ground because this would stimulate a lot of thinking. Meeting people on the ground is an opportunity to hear firsthand information, which is necessary to improve themselves. “I want to listen to them whether it is bad or good so I can see the reality. More than half of my time is not in the office. I go out for test drives with the media because these are insightful,” he adds. Najima also works with his personal mentors even those from the previous job because these people can provide him very good insights to help sustain the company’s growth momentum. “What we need is to focus on customer experience and strengthen our customer-centric strategy because the customer is the center of what we do,” he adds. Amid a growing business in a developing economy, Najima’s second wind in the Philippines is more than pleasant. He viewed the Philippines as a very lucky country. He was also amazed by the English proficiency of these hardworking Filipinos. “I am very happy to come here,” says Najima.