Nissan profits soar 92% on sales surge

Nissan reported a 92% increase in its annual profit for the fiscal year ending in March, reaching 426.6 billion yen ($2.7 billion). This rise came as the Japanese automaker saw sales growth in all its major markets except for China.

The company’s annual revenue soared by nearly 20% to 12.7 trillion yen ($81.5 billion), according to Nissan Motor Co.

For the quarter from January to March, Nissan, headquartered in Yokohama, saw a slight decrease in profit to 101.3 billion yen ($650 million) from 106.9 billion yen in the previous quarter.

During this period, quarterly revenue increased by 13%, totaling 3.5 trillion yen ($22 billion). The company, known for the Leaf electric car, Infiniti luxury vehicles, and Z sportscars, reported these figures.

Nissan’s CEO Makoto Uchida announced a strategic plan titled “The Arc,” initiated last month, which focuses on enhancing electric vehicle sales as part of the company’s growth strategy. “We will progress step by step, balancing our product range and executing the best business strategies,” Uchida explained during a press briefing.

Uchida also highlighted Nissan’s aim to continue leading in the Japanese electric vehicle market with its Ariya SUV and to boost its U.S. lineup with new models such as the Armada and Murano SUVs, and the luxury Infiniti QX80.

By early 2029, Nissan plans to begin mass production of electric vehicles using advanced solid-state batteries, applicable across various models, including pickup trucks.

In collaboration news, Nissan and Honda Motor Co. announced a partnership last March to develop electric vehicles and automotive intelligence technology, though Uchida could not provide further details at this time.

For the upcoming fiscal year through March 2025, Nissan forecasts a profit of 380 billion yen ($2.4 billion), a decrease of 11% from this year, partly due to increased development costs and investments in supplier support.

While the depreciating yen has typically benefited Japanese exporters like Nissan by enhancing the value of overseas earnings, the company emphasized the importance of a stable exchange rate after the yen’s decline contributed nearly 13% to this year’s operating profit.

Vehicle sales totaled 3.44 million globally for the fiscal year, slightly missing projections but improving from 3.3 million the previous year. Notably, sales increased in the U.S., Japan, and Europe but fell by 24% in China due to competitive pressures from local manufacturers such as BYD, which has a strong lineup of electric vehicles.

Looking forward, Nissan expects global sales to rebound to 3.7 million vehicles by March 2025, with anticipated recovery in China and continued growth in other major regions.

Nissan’s stock rose by 0.9% in Tokyo trading, closing before the earnings announcement.