Nissan Reports Significant Profit Decline, Lowers Fiscal Outlook

TOKYO – Nissan Motor Co. announced a drastic 73% drop in profit for the April-June quarter, prompting the automaker to revise its full fiscal year outlook downward. The company reported a profit of 28.6 billion yen ($187 million), a sharp decline from 105.5 billion yen in the same period last year. Following the earnings announcement, Nissan's stock plummeted nearly 7% on the Tokyo Stock Exchange, reflecting investor concerns over the company's financial health. Despite maintaining steady global vehicle sales at 787,000 units, Nissan's profitability has been hindered by the need to optimize inventory levels. The automaker is optimistic about recovery in the second half of the fiscal year, citing plans to enhance inventory management and the introduction of new models, including the Altima sedan and Infiniti luxury vehicles. Nissan aims to sell 3.65 million vehicles globally by the end of March 2025. Nissan faces challenges in key markets, particularly in the U.S. and China, as the global auto industry grapples with a shift towards sustainability. Consumers are increasingly favoring electric vehicles (EVs) and other environmentally friendly options, creating opportunities for new entrants like Chinese manufacturers and Tesla, while posing risks for established players like Nissan. Looking ahead, Nissan is committed to mass-producing electric vehicles with next-generation batteries by early 2029, as it seeks to adapt to the evolving automotive landscape. Meanwhile, competitors Toyota and Honda are set to release their financial results in the coming weeks.