Cost cuts and FX gains offset weaker China demand, but Nissan cuts its China sales outlook by 11% for the fiscal year.
Nissan Motor reported its first quarterly net profit in two years, driven by cost reductions and foreign-exchange gains, while reaffirming its annual earnings forecast. The automaker cited stronger sales in the U.S. and Japan for the three months ended June, though challenges persist in other regions.
The company now expects an 11% decline in China sales for the fiscal year ending March 2027, reversing an earlier 8.7% growth projection. Executives attributed the shift to slower economic growth and a faster transition to electrified vehicles amid higher fuel costs linked to Middle East tensions.
Nissan also flagged ongoing geopolitical uncertainty and elevated logistics costs in the Middle East as headwinds, though demand for its vehicles in the region remains resilient. The company plans to adjust inventory and expand its new-energy vehicle lineup to counter market pressures.