Nissan expects 38% full-year profit rise on stronger sales outlook

Nissan Motor Co on Thursday flagged a better-than-expected 38% rise in profit this year on stronger sales, a rosier outlook for the Japanese automaker as it retools its often difficult alliance with Renault and faces headwinds in China.

The bullish forecast, which comes as Nissan (7201.T) is pushing to turn itself around after years of turmoil, was based on expectations of almost 30% sales growth in both North America and Europe. However, in the key Chinese market the forecast was far less upbeat, at just 8%.

Nissan, like other global automakers, is facing intense pressure in the world’s largest auto market, where nimble local players are posing an increasing challenge thanks to a rapid roll-out of battery-powered electric vehicles (EVs).

The speed of change in the Chinese market now far exceeds what Nissan had previously expected, chief executive Makoto Uchida told an earnings briefing.

The automaker needs to “break away” from conventional methods and shift to a more flexible structure to respond better, he said.

This report’s information was first seen on REUTERS; to read more, click this link.