Nissan Motor announced its second sales forecast reduction in months, cutting its global sales outlook for the fiscal year ending March 2027 to between 2.97 million and 3 million vehicles, down from 3.15 million previously [1]. This follows an earlier August revision that reduced the outlook from 3.3 million units to 3.15 million units [1]. The company's second-quarter operating profit plummeted 96% to 2.1 billion yen ($13 million), significantly underperforming analyst expectations of 54.9 billion yen [1]. Despite the profit collapse, net revenue grew 8.2% to 3.1 trillion yen in the quarter [1], and the company maintained its full-year operating profit and net cash guidance [1].
In response to intensifying competition in China, CEO Ivan Espinosa outlined a strategic pivot toward developing vehicles specifically for Chinese consumers, leveraging local technology, lower costs, and faster development processes [1]. Nissan plans to rapidly expand exports of China-developed vehicles from two models to five, targeting 12 regional market clusters in the "very near term" [1]. Espinosa stated: "We can defend ourselves from these very aggressive players by using exactly the same elements that they have: speed, cost, and good technology" [1]. The company faces mounting headwinds including weaker demand, a faster-than-anticipated shift to new energy vehicles, and intensifying competition putting "greater pressure on sales than initially anticipated" [1].
Espinosa, who has led the company since April 2025, emphasized progress on a turnaround plan to reduce Nissan's global manufacturing footprint and cut its workforce by 15%, with the company achieving 365 billion yen in savings approximately 18 months into the plan [1]. The market has reacted negatively, with Nissan shares down 29% year-to-date [1]. The company's challenges mirror broader industry pressures, as peer Volvo Cars similarly crashed in October after reporting an operating loss, with its CEO also citing the need for regionally adapted cars in China [1].
CONCLUSION
Nissan's second sales forecast cut and 96% profit collapse reflect severe market pressures in China and globally, driven by intensifying competition from local rivals and accelerating EV adoption. The company's strategy to develop China-specific vehicles and expand regional exports represents a defensive pivot, though execution risks remain high given the 29% year-to-date share decline and broader automotive industry headwinds.