Nissan Motor Revises its Profit Forecast Downward for the Past Fiscal Year, Missing Analysts' Expectations as the Automaker Sold Fewer Vehicles Than Initially Expected Due to Increasing Competition.

For the fiscal year ending in March, the Japanese automaker now expects a net profit of 370 billion yen (about 2.39 billion US dollars), representing an increase of 67% but falling below the previous forecast of 390 billion yen. Analysts, according to a FactSet survey, had anticipated a net profit of 403.9 billion yen.

Nissan announced that revenue is expected to have risen by 19% to 12.6 trillion yen, which is also below the previous estimate of 13 trillion yen. The automaker sold 3.44 million vehicles in the past fiscal year, fewer than previously expected. In February, the company had already lowered its global sales forecast for the fiscal year from 3.7 million to 3.55 million units, citing logistics problems and increased competition.

Nissan CEO Makoto Uchida stated on Friday that the demand for cars had decreased, complicating the operational environment. Last month, the automaker announced plans to introduce 30 new models, including 16 electrified ones, to the market within three years and to increase total sales by 1 million units to accelerate the transition to electric vehicles.

On Friday, Nissan said it would make collaboration with suppliers more effective to achieve this goal. The company is redesigning its global strategy, following the announcement of the restructuring of its alliance with Renault and Mitsubishi Motors in February of last year. Nissan and Honda Motor announced last month that they would explore opportunities for collaboration on electric vehicles, their core components, and software.