Recently, Nissan Motor announced its financial results for the last fiscal year. According to the report, the company's profit rose 92% to 426.6 billion yen ($2.7 billion) in the fiscal year ending in March, thanks to higher sales in all major global markets except China.
Nissan noted that sales surged nearly 20% to 12.7 trillion yen ($81.5 billion) in the fiscal year, mainly due to "higher volumes, higher net unit sales, and tight control on fixed costs." In addition, CEO Makoto Uchida also mentioned that the weakness of the yen has also provided a "short-term" growth momentum for the company's profits.
In the fiscal year, Nissan's global sales were 3.44 million units, slightly lower than expected, but still higher than the previous year's 3.3 million units.
However, Makoto Uchida also issued a warning: "In the medium to long term, regardless of the strength of the yen...... Volatility in the foreign exchange market can have a negative impact. This will be a challenge for us. ”
In the first quarter of this year (January-March), Nissan's profit edged down 5.2% from 106.9 billion yen to 101.3 billion yen (about $650 million), while quarterly sales rose 13% to 3.5 trillion yen ($22 billion).
Nissan forecasts a profit of 380 billion yen ($2.4 billion) in the next fiscal year ending March 2025, down 11% year-on-year, largely due to higher development costs, including support suppliers.
For the next fiscal year, Nissan expects its global sales to increase by 7.5% to 3.7 million units. Among them, the Chinese market is expected to resume growth, with sales of 800,000 units, a growth rate of 0.8%, compared with a 24% decline in sales last year due to increased market competition and consumers' shift to non-traditional fuel vehicles.
Meanwhile, Nissan expects revenue to rise 7.2% to 13.6 trillion yen in the next fiscal year, but expects net profit to fall 11% to 380 billion yen.
Different strategies for different regions
Makoto Uchida recently made it clear that Nissan has set a new growth target and plans to achieve this goal by implementing a strategy called "TheArc". The strategy has been in full swing since last month, and the core of the strategy is to leverage the power of electric vehicles to drive further sales.
Elaborating on this strategy, Makoto Uchida said, "We will gradually achieve our growth goals by building a balanced product portfolio and executing the most rational business strategy. His words reveal his firm confidence in Nissan's future development, and also demonstrate his accurate market insight and strategic planning capabilities.
Nissan is looking to consolidate and expand its leading position in the Japanese EV market with its new Ariya sport utility vehicle. In addition, Nissan has actively launched new American models, including the Armada and Murano SUVs, as well as the Infiniti QX80 luxury model, which aims to meet the needs of different markets around the world and demonstrate its innovation in the field of automotive design and manufacturing.
It is worth mentioning that Nissan has also announced an ambitious plan to start mass production of electric vehicles equipped with next-generation batteries in early 2029. The new batteries, solid-state batteries, will power a range of vehicles, including pickup trucks. This move not only demonstrates Nissan's R&D strength in battery technology, but also indicates its strong competitiveness in the future electric vehicle market.
In March, Nissan and its domestic rival Honda Motor Co. announced that they would work together to develop electric vehicles and smart car technologies. When asked about this collaboration, Makoto Uchida did not disclose too many details, but his answers revealed his expectation and confidence in this cooperation.
This partnership between Nissan and Honda undoubtedly sends a clear signal to the outside world: in the face of the "once-in-a-century" changes that the automotive industry is experiencing, the two companies choose to work together to explore development opportunities in the field of electric vehicles. The establishment of this strategic partnership will not only help the two sides complement each other in technology and market, but also bring new development impetus to the entire automotive industry.
At the same time, industry expert Satoru Takada also pointed out that both Nissan and Honda are optimistic about the development and application of solid-state batteries. This is not only a major breakthrough in the field of technology for the two companies, but also indicates that solid-state batteries will become an important development direction for the electric vehicle industry in the future.
However, in the face of rising cost pressures brought about by inflation, how Nissan and Honda will effectively respond has also become the focus of market attention. Although Makoto Uchida did not respond directly, it is not difficult to see from his previous statements that Nissan has made full preparations and plans.
On the road to accelerating the transition to electric vehicles, Nissan Motor has shown strong determination and strong action. In March, the company announced plans to launch 30 new models, including 16 electrified models, with the aim of increasing total vehicle sales by 1 million units over three years. The realization of this ambitious goal requires not only Nissan's continuous innovation in technology and market, but also the precise layout and efficient implementation of its global strategy.
Commenting on Nissan's strategy in China, Makoto Uchida said that the company will continue to focus on the Chinese market, but he also admitted that it needs to change its strategy in China. Since announcing a restructuring of its alliance with Renault and Mitsubishi Motors in February last year, Nissan has been aggressively reshaping its global strategic map. At the same time, a feasibility study for cooperation with Honda is also in full swing. This series of measures fully demonstrates that Nissan Motor is promoting its globalization strategic transformation and development with unprecedented speed and intensity.
The Chinese market will be a top priority
Nissan's performance in major markets around the world is complex. Sales in the U.S., Japan and Europe all increased, demonstrating Nissan's strong strength and reputation in these regions. However, in the Chinese market, Nissan faces a series of challenges.
According to statistics, Nissan's sales in China fell by 24%. Behind this figure is the profound changes and fierce competition in China's auto market. In recent years, China's auto market has been in the whirlpool of price wars, with local companies such as BYD emerging with their powerful electric vehicle products and gradually dominating the market.
Makoto Uchida has a deep understanding of the plight of the Chinese market. He said that although sales have improved in recent months, there is still the problem of "overcapacity". This has undoubtedly put tremendous pressure on Nissan to re-examine and adjust its strategy in the Chinese market.
Last year, China overtook Japan to become the world's largest exporter of automobiles. This achievement is mainly due to China's global leadership in the field of electric vehicles. Companies such as BYD have successfully outperformed international competitors by virtue of their advantages in electric vehicle technology, contributing to the rise of China's automotive industry.
In the face of the challenges and opportunities of the Chinese market, Nissan Motor has not chosen to back down. Satoru Takada, an automotive analyst at research and consulting firm TIW, noted that "how to compete with China in the Asian market is a potential theme for Nissan, Toyota and Honda". However, Nissan has made it clear that they will "not slow down" the pace of expanding the EV market.
In order to better adapt to the needs and changes of the Chinese market, Nissan Motor is actively working hard. Makoto Uchida said in March that Nissan would be "focused on delivering what Chinese customers want" and pledged to cut production costs for the next generation of electric vehicles by 30 percent. This move will not only help improve Nissan's competitiveness in the Chinese market, but also bring consumers a more affordable car purchase option.
In order to better meet the expectations of Chinese consumers for future mobility, Nissan Motor has made full use of local resources and invested a lot of R&D efforts to develop five new energy concept models equipped with pure electric and plug-in hybrid technologies based on the needs of Chinese users. These models made a stunning debut at this year's Beijing Auto Show and attracted the attention of many consumers.
Nissan's long-term plans for the Chinese market have also surfaced. By FY2026, the company plans to refresh 73% of its Nissan brand lineup and launch eight new energy vehicles, including five Nissan models. This ambitious plan not only demonstrates Nissan's importance and confidence in the Chinese market, but also demonstrates its ambitions in the field of new energy vehicles.
In addition to continuous innovation and improvement in terms of products, Nissan is also actively expanding its partner network to integrate advanced technologies such as AI into its products and services. They have partnered with Baidu, a leading company in the field of smart technology in China, to bring innovative and exciting intelligent systems and AI-based mobility solutions to users in China and around the world.
It can be seen that Nissan has always adhered to the commitment of "in China, for China", and continues to cultivate the Chinese market through in-depth research and customized market strategies. They are committed to providing products and services that meet the needs of Chinese consumers, so as to enhance the value and comprehensive competitiveness of enterprises in the Chinese market and achieve long-term and stable development.