Nissan Motor is anticipating a rise in worldwide sales based on rebounding demand seen in the U.S. and other markets, although the projections are seen to be modest.
Nissan is keeping its income projections modest for the fiscal year ending March 2022
The Japanese automaker on Thursday said that it is looking forward to an 18.7 percent increase in revenue at 10 trillion yen (Php 4.06 trillion) for the year. It also forecasts global unit sales to bring 4 million yen for this fiscal year, an increase of 3 percent from last year.
“With the support of our employees and suppliers, we have been able to improve the quality of sales and optimize fixed costs,” said Nissan President & CEO Makoto Uchida in an online news conference. “Despite the difficult external environment, we are steadily achieving our stated goals.”
The company has been cutting down on incentives given to dealers especially in the U.S. market. It has also been moving away from “cheap sales” which are taking a toll on its earnings. With profitability per vehicle improving even as the Japanese yen has been weakening, Nissan is optimistic about being able to maintain its operating income at around the same level as last year.
The carmaker has been reducing its dealer incentives, especially in the U.S.
The carmaker expects a 257-billion-yen (Php 104.3 billion) loss on its operating profit, brought about by higher prices of materials as well as soaring operating costs. Net profit is also projected to fall by 30.4 percent following the sale of its entire stake in German carmaker Daimler AG in May 2021.
Net income for the year ending March 2022 stood at 215 billion yen (over Php 87.2 billion), marking the first time in three years that Nissan has posted a profit.
Nissan maintains an alliance with fellow Japanese brand Mitsubishi and French automaker Renault, the latter announcing plans to form a new electric vehicle venture with its partners early this year. “We are in a position to support Renault’s plans, but we would like to approach this issue after discussion on whether this will strengthen the alliance,” noted Uchida.
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