Nissan's CEO Ivan Espinosa announced plans to expand exports of China-developed vehicles from two to five models, targeting 12 regional market clusters. This strategy aims to enhance competitiveness against aggressive local players by leveraging local technology and cost efficiencies.
The company has faced challenges in the Chinese market, leading to a second cut in its annual sales forecast for the fiscal year ending March 2027, now projected between 2.97 million and 3 million vehicles, down from 3.15 million. The company cited weaker demand and a rapid shift to electric vehicles as key factors affecting sales.
Additionally, Nissan reported a significant 96% drop in second-quarter operating profit to 2.1 billion yen ($13 million), falling short of analyst expectations. Despite these challenges, Nissan maintained its full-year operating profit and net cash guidance and highlighted progress in its turnaround plan, which has achieved 365 billion yen in savings.
Year-to-date, Nissan's shares have declined by 29%, reflecting broader market pressures, particularly in China