Nissan Motor Company announced this week that it has significantly revised its financial estimates for the full fiscal year ending on 31 March 2025 (FY2024), due to an increase in global competition and a deterioration in its global sales performance during the year. The company reported global sales of 3.3 million vehicles for the year, a 4.3% decline compared with the previous year.
The Japanese automaker now estimates that it likely incurred a net loss of between JPY 700 billion and JPY 750 billion in FY2024, which represents a substantial increase over the JPY 80 billion net loss it forecast only in February.
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The company expects net revenues to have reached JPY 12.6 trillion in FY2024, slightly better than its previous forecast of JPY 12,500 trillion, but its operating profit is now estimated at JPY 85 billion for the year compared with JPY 120 billion previously forecast. The full FY2024 financial results are scheduled to be released in May.
The company confirmed that the revision in its expected financial performance was due to costs related to its ongoing turnaround plan, and other factors. It pointed out that its management team has conducted a thorough review of its production assets, which led to impairments exceeding JPY 500 billion in North America, Latin America, Europe, and Japan combined. Additionally, restructuring costs are expected to exceed JPY 60 billion, as part of ongoing turnaround measures.
Nissan says it remains in “a solid cash position,” estimating that it ended FY2024 with net cash of JPY 1.498 trillion. Cash and cash equivalents are estimated at JPY 2.2 trillion, while it also has JPY 1.2 trillion in loans to sales finance companies, which translates to JPY 3.4 trillion in available liquidity.
Nissan claims to be “disciplined” in its approach to debt management and said it expects to have ended FY2024 with JPY 1.9 trillion in automotive debt – stable compared with the previous year.
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By GlobalDataNissan announced separately at the Auto Shanghai Show 2025 this week that it is committed to investing an additional JPY10bn (US$1.4 billion) in China, as it looks to step up its new energy vehicle (NEV) programme in the country amid competition continues to intensify.
