Nissan Cuts Vehicle Sales Forecast as China Competition Intensifies

What changed

Nissan cut its annual vehicle-delivery forecast to a maximum of 3 million, down from 3.15 million, as weak demand and tougher competition in China hit sales.

The Japanese automaker reported second-quarter operating profit of ¥2.12 billion, far below the ¥49.3 billion analysts had expected. Chief Executive Ivan Espinosa called China Nissan’s biggest challenge.

Why it matters

China is where Nissan’s recovery is under the most pressure. Sales there fell 15% in the first half of the fiscal year as buyers shifted faster than expected toward locally made electric vehicles. Nissan is cutting jobs and closing factories while trying to catch up with new electric and plug-in hybrid models.

The contrast with other markets is sharp. Deliveries rose 6.3% in Japan and 2.1% in North America, where the move toward electric vehicles is happening more slowly. That gives Nissan some breathing room, but it does not solve the problem in its biggest challenge market.

The outlook is uncertain: new models and stronger second-half volumes may improve profitability, but Nissan’s expanded EV and plug-in hybrid range still has to prove it can restore the company’s competitiveness in China. Nissan has kept its full-year financial forecast and plans to unveil a broader business strategy in February.