Nissan, a Japanese automaker headquartered in Yokohama, reported a significant increase in both profit and sales for the fiscal year ending in March. Net income reached 426.6 billion yen ($2.7 billion), representing a 92% year-on-year increase, while total revenue increased almost 20% to 12.7 trillion yen ($81.5 billion). For the first quarter of the current financial year, Nissan’s net income decreased marginally to 101.3 billion yen ($650 million), down from 106.9 billion yen in the same period last year. Quarterly sales rose by 13% to 3.5 trillion yen ($22 billion).
Nissan’s CEO, Makoto Uchida, stated that the company aims to achieve sustained growth via “The Arc,” an ongoing business strategy. The program, launched last month, is centered around electric vehicles and involves a balanced product line-up and prudent commercial decisions. Uchida asserted that progress would be made incrementally.
Nissan’s electric vehicle portfolio includes the Leaf, Infiniti luxury models, and the Z sports cars. The firm intends to retain its position as the foremost electric vehicle manufacturer in Japan by introducing the Ariya, a sports utility vehicle, later this year. In addition, new releases in the US include the Armada and Murano SUVs, as well as the Infiniti QX80 luxury model.
The company expects to maintain a consistent level of profitability over the following five years, with anticipated profits reaching 380 billion yen ($2.4 billion) in the financial year ending in March 2025. This projection takes into account expenses associated with research and development activities, including assistance to suppliers.
Uchida declined to comment further on a recent partnership between Nissan and Honda, announced in March, regarding the joint development of electric cars and intelligent automotive technology.
The weakening yen has traditionally favored Japanese exporters, such as automakers, by increasing the value of their overseas earnings when converted back into yen. Nevertheless, Nissan expressed reservations concerning the trend, advocating for a stable exchange rate instead. The weak yen raised Nissan’s operating profit by nearly 13% during the previous fiscal year.
Nissan sold 3.44 million vehicles in the past fiscal year, slightly less than anticipated, but still exceeding the previous year’s figure of 3.3 million cars. By region, Nissan witnessed sales growth in the US, Japan, and Europe, with sales in China declining by 24%. The Chinese automobile industry has encountered difficulties due to a pricing war in a market predominantly controlled by local manufacturers, such as BYD, with superior EV offerings.
Despite the challenges in China, Nissan anticipates an increase in worldwide sales to reach 3.7 million vehicles during the present financial year, with sales rebounding in China while also growing in North America, Japan, and Europe.
Shares in Nissan closed up 0.9% prior to the announcement of these financial results.
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