Nissan cuts unit sales forecast, sees more profit

Nissan Motor has downgraded its full-year unit sales forecast due to a lack of semiconductors and other auto parts. Yet the Japanese carmaker was still able to sharply raise its profit projection, thanks to improved performance in North America and a weaker yen.

Nissan on Tuesday said it expects its annual sales volume for the year through March 2022 to be 3.8 million units. That is 600,000 fewer than its previous forecast.

A global computer-chip shortage, as well as parts supply disruptions in pandemic-battered Southeast Asia, have forced Nissan to slash output.

However, the company upgraded its net income forecast to 180 billion yen, or nearly 1.6 billion dollars. That represents a threefold increase in yen terms from the previous outlook.

Nissan has kept discounts low in North America and other markets, and that has boosted profit margins.
A greater-than-expected decline in the value of the yen against the dollar has also improved the company's earnings outlook.

Nissan Chief Operating Officer Ashwani Gupta said the impact of the chip shortage on the auto industry had been larger than anticipated and the uncertain business climate is likely to continue for some time.