Nissan Motor announced another reduction to its sales forecast as the Japanese automaker contends with mounting pressures in China’s automotive market. The company revised its global sales outlook for the fiscal year ending March 2027 to between 2.97 million and 3 million vehicles, down from the 3.15 million projected previously. This represents the second downward adjustment in recent months, following an earlier reduction from 3.3 million units announced in August.
CEO Ivan Espinosa attributed the revised outlook primarily to weakening demand in China, an accelerating transition toward new energy vehicles, and intensifying competition from Chinese automakers. In response to these market dynamics, Nissan plans to leverage strategies mirroring those of its Chinese competitors, emphasizing speed, cost efficiency, and advanced technology. The company intends to expand exports of vehicles developed specifically for Chinese consumers from two models to five, targeting 12 regional market clusters in the near term.
During the second quarter, Nissan reported an operating profit of 2.1 billion yen, representing a 96% decline from the prior year and falling significantly below analyst expectations of 54.9 billion yen. Net revenue grew 8.2% to 3.1 trillion yen during the quarter, largely meeting consensus estimates. The company attributed the sharp profit decline to the absence of emissions-related expense benefits that had boosted results a year earlier. Nissan maintained its full-year operating profit and net cash guidance despite the sales forecast reduction.
Espinosa, who assumed leadership in April 2025, highlighted progress on a broader restructuring initiative aimed at reducing global manufacturing capacity and cutting the workforce by 15%. Approximately 18 months into the turnaround plan, the company has realized 365 billion yen in cost savings. The challenges facing Nissan reflect broader difficulties confronting Western automakers in China, with peer Volvo Cars also reporting operating losses earlier in October amid similar market pressures in China and the United States.
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