Nissan Motor Co. reported a 92% jump in profit for the fiscal year through March, reaching 426.6 billion yen ($2.7 billion). The Japanese automaker saw annual sales increase by nearly 20% to 12.7 trillion yen ($81.5 billion), with growth in all major global markets except China. In the January-March quarter, profit slightly decreased to 101.3 billion yen ($650 million) as sales rose 13% to 3.5 trillion yen ($22 billion) for Nissan, known for its Leaf electric car, Infiniti luxury models, and Z sportscars. Chief Executive Makoto Uchida announced a new growth strategy, “The Arc,” focusing on electric vehicles to drive sales.
Nissan is looking to maintain its leadership in electric vehicles in Japan with the Ariya sports-utility vehicle. The company’s new U.S. models include the Armada and Murano SUVs, as well as the Infiniti QX80 luxury model. Nissan plans to mass produce electric vehicles powered by next-generation batteries by early 2029, offering solid-state batteries across a range of models, including pickup trucks. In March, Nissan and Honda announced a collaboration on developing electric vehicles and auto intelligence technology, although details have not been disclosed beyond the initial announcement.
For the year through March 2025, Nissan is projecting a 380 billion yen ($2.4 billion) profit, an 11% decrease from the previous year due to development costs, including support for suppliers. While the cheap yen has been beneficial for Japanese exporters like Nissan by boosting overseas earnings when translated into yen, the company emphasized the importance of a stable exchange rate. Nissan’s operating profit for the fiscal year ended in March increased by nearly 13%. Despite selling 3.44 million vehicles globally for the fiscal year, slightly lower than projections but better than the previous year, sales growth varied by region, with increases in the U.S., Japan, and Europe, and a 24% decrease in China.
Nissan is aiming to increase its global sales to 3.7 million vehicles by the year through March 2025, with expectations of sales recovering in China while continuing to grow in North America, Japan, and Europe. The Chinese auto market has presented challenges for Nissan, with intense competition from local brands like BYD offering strong EV offerings. Market conditions have led to a price war in China, impacting sales for foreign automakers. Despite the challenging Chinese market, Nissan remains positive about its future prospects and is confident in its ability to achieve growth targets. Following the earnings announcement, Nissan shares closed 0.9% higher in Tokyo trading.
