Nissan Lowers Sales Outlook Amid Intensifying Competition in China
Nissan Motor has lowered its full-year global sales forecast for the second time since August, now projecting between 2.97 million and 3 million vehicles for the fiscal year ending March 2027. The company is facing significant headwinds in China due to weakening demand and a rapid consumer shift toward new energy vehicles (NEVs). This pressure was reflected in a sharp 96% drop in second-quarter operating profit, which fell to 2.1 billion yen, missing analyst expectations of 54.9 billion yen. To combat local Chinese competitors, CEO Ivan Espinosa announced a strategy to develop vehicles specifically for the Chinese market using localized technology and faster development cycles. Nissan plans to expand exports of these China-developed models from two to five, targeting 12 regional market clusters globally. Additionally, the company continues its restructuring efforts, aiming to reduce its global manufacturing footprint and workforce by 15%, having already achieved 365 billion yen in savings.
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Topics: Automotive Industry China Market Strategy Electric Vehicles Sales Forecast