Japanese automaker Nissan reports 92% jump in profit as sales surge
9 May 2024, 10:44
Sales grew in all major global markets except China.
Nissan’s profit for the fiscal year through March jumped 92% to 426.6 billion yen (£2.1 billion), as sales grew in all major global markets except China, the Japanese automaker said on Thursday.
Annual sales surged nearly 20% to 12.7 trillion yen (£65.3 billion), Nissan Motor Co said.
For the January to March quarter, profit at Nissan, based in the port city of Yokohama, edged down slightly to 101.3 billion yen (£520 million) from 106.9 billion yen.
Quarterly sales rose 13% to 3.5 trillion yen (£17.9 billion) for the maker of the Leaf electric car, Infiniti luxury models and Z sportscars.
Chief executive Makoto Uchida said Nissan was aiming for further growth under a strategy called “The Arc” kicking in from last month, focusing on electric vehicles to boost sales.
“We will do this step by step with a balanced product portfolio and by implementing optimal business strategies,” he told reporters.
Nissan hopes to maintain its leadership in electric vehicles in the Japanese market with its Ariya sports-utility vehicle.
Its new US models include the Armada and Murano SUVs and the Infiniti QX80 luxury model.
Nissan has said it will mass produce electric vehicles powered by next-generation batteries by early 2029, offering solid-state batteries in a range of models, including pickup trucks.
In March, Nissan and domestic rival Honda Motor Co said they will work together in developing electric vehicles and auto intelligence technology.
When asked by a reporter, Mr Uchida said he could not comment yet beyond the announcement.
Nissan is projecting a 380 billion yen (£1.9 billion) profit for the year through to March 2025, down 11% on year, because of development costs that will include support for suppliers.
The cheap yen has generally been a plus for Japanese exporters, including automakers, by raising the value of its overseas earnings when translated into yen.
But Nissan played down the perk, stressing a steady exchange rate was desirable.
The cheap yen boosted Nissan’s operating profit for the fiscal year ended in March by nearly 13%.
Nissan sold 3.44 million vehicles globally for the fiscal year, slightly lower than its projections but better than the 3.3 million vehicles for the year before.
By region, Nissan sales grew in the US, Japan and Europe, but dove 24% in China.
The Chinese auto market has been challenging amid a price war in a market dominated by locals such as BYD, with its strong EV offerings.
Still, Nissan is expecting its global sales to rise to 3.7 million vehicles for the year through March 2025, with sales recovering in China while continuing to grow in North America, Japan and Europe.
Nissan shares finished 0.9% higher in Tokyo trading, which closed before earnings were announced.
