Sunday, 5 December, 2021

Nissan raises profit outlook

Nissan raises profit outlook

Popular News

TOKYO: Nissan Motor Co on Tuesday raised its full-year operating profit outlook by a fifth as its margins got a boost from newer models and lower sales incentives due to tight supplies of vehicles.

Nissan like other big global carmakers has been forced to cut production because of a shortage of semiconductors and other components. But vehicle demand in key markets such as China and the United States is growing as consumer spending rebounds following a pandemic-induced slump, report agencies.

“Two years ago, we had a problem of how to sell, and that is not the problem today,” Chief Operating Officer Ashwani Gupta told a news conference.

Nissan had also benefitted as it revamps its aging model line-up as part of a business plan to improve profitability by reducing global production and model types by a fifth, he added.

Nissan’s break even point is now around 3.7 million vehicles a year, down from 4.4 million, Chief Financial Officer Stephen Ma said.