Nissan’s Profits Skyrocket by 92%

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Nissan’s Profits Skyrocket by 92% due to Strong Sales Performance

Nissan reported a 92% increase in profit for the fiscal year ending in March to 426.6 billion yen ($2.7 billion), with sales rising in all major global markets except China. The Japanese automaker’s annual sales climbed nearly 20% to 12.7 trillion yen ($81.5 billion).

In the January-March quarter, Nissan’s profit inched down to 101.3 billion yen ($650 million) from 106.9 billion yen, while quarterly sales increased by 13% to 3.5 trillion yen ($22 billion).

CEO Makoto Uchida stated that Nissan is targeting further growth through its new strategy, “The Arc,” which focuses on electric vehicles to drive sales. The company aims to maintain its leadership in electric vehicles in Japan with the Ariya sports-utility vehicle and plans to introduce electric vehicles powered by next-generation batteries by early 2029.

Nissan and Honda Motor Co. have announced collaboration on electric vehicle development and auto intelligence technology. Nissan forecasts a profit of 380 billion yen ($2.4 billion) for the year ending in March 2025, a decrease of 11% due to development costs.

Despite the benefit of a weak yen on overseas earnings, Nissan emphasised the importance of a stable exchange rate. The company sold 3.44 million vehicles globally for the fiscal year, slightly below projections but an improvement from the previous year.

While Nissan experienced sales growth in the U.S., Japan, and Europe, sales in China dropped by 24%. The company anticipates a recovery in Chinese sales and aims to increase global sales to 3.7 million vehicles by March 2025, focusing on growth in North America, Japan, and Europe.

Please note, the above is for educational purposes only and does not constitute advice. You should always contact your advisor for a personal consultation.

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