Updated February 9th, 2024 at 08:09 IST
Nissan shares fall 11% as Q3 results highlight China worries
Despite maintaining its outlook, Nissan adjusted retail sales forecast for FY downwards to 3.55 million vehicles, compared to initial estimate of 3.7 million.
Nissan shares fall: Nissan Motor witnessed a major downturn in Tokyo trading on Friday, with shares plunging over 11 per cent.
The drop came in response to the company's announcement the previous day, revealing lower-than-expected car sales projections for the current financial year and expressing concerns regarding its operations in China.
This single-day decline of 11 per cent marked the most since September 2001, resulting in a market value loss of approximately $1.8 billion for the automaker.
Despite maintaining its annual outlook, Nissan adjusted its retail sales forecast for the fiscal year downwards to 3.55 million vehicles, compared to the initial estimate of 3.7 million.
During a press briefing following the release of the results, Nissan CFO Stephen Ma attributed the revised forecast to challenges, particularly in China, including heightened competition and logistical issues in key markets.
Addressing a 26 per cent decrease in retail sales volumes over nine months in China, Ma outlined measures taken by Nissan to counter industry-wide challenges and enhance competitiveness in the world's largest car market.
Nissan's strategic shift involves concentrating efforts on cities and regions in China where the transition to electric vehicles is progressing at a slower pace, Ma explained.
This adjustment contributed to a 19 per cent year-on-year increase in unit sales, totaling 247,000 vehicles in the last quarter of the previous year.
Ma stressed Nissan's commitment to maintaining a major presence in China, striving to remain relevant and competitive in the evolving market landscape.
(With Reuters Inputs)
Published February 9th, 2024 at 08:09 IST