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Nissan, a major Japanese automobile manufacturer, reduces sales and profit forecasts

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Japanese auto giant Nissan announced on Friday that it has reduced its sales and profit forecasts for the fiscal year ending on March 31, citing higher costs. The company revised its sales volume to 3.44 million units, net revenue to 12.6 trillion yen, and operating profit to 530 billion yen. Net income is expected to reach 370 billion yen for fiscal year 2023, down from the previous estimates of revenue of 13 trillion yen, operating profit of 620 billion yen, and net income of 390 billion yen.

The revision was attributed to lower sales volumes, increased costs paid to suppliers, and other factors. Nissan had already adjusted its unit sales volume projection in February from 3.7 million to 3.55 million due to temporary logistics disruption and intensifying competition. The company aims to increase annual global sales volume by one million units by the end of fiscal year 2026 and accelerate the transition to electric vehicles as part of its new business plan.

CEO Makoto Uchida mentioned difficulties in the Chinese market, stating that sales volume struggles persist despite recent improvements. Nissan plans to optimize production levels and collaborate with joint venture partners to expand its market presence. Meanwhile, rival Honda is exploring strategic partnerships in electric vehicles amid industry upheavals.

Nissan’s cautious approach to electric vehicles contrasts with Chinese automakers’ dominance in the EV market. The company, along with other Japanese giants like Toyota, has focused on hybrid models. Nissan’s full-year results are scheduled to be announced on May 9 as the industry continues to evolve in the face of global market shifts.

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