Nissan raises profit outlook but sees chip limit to growth

Nissan Motor Co on Tuesday raised its full-year profit outlook as it squeezed out more profit per vehicle but said that access to scarce semiconductors would be the key driver of future earnings growth.

File photo used for representational purpose only (AFP)
File photo used for representational purpose only

Like other big global carmakers, Nissan has been forced to cut vehicle output, even amid robust demand in key markets such as China and the United States because of a chip shortage caused by Covid supply chain disruptions and competition for the component from a range of industries.

"2022 will be driven by how many cars we can make, rather than how many we can sell," Nissan Chief Operating Officer Ashwani Gupta said at a briefing following its latest earnings announcement.

Also check these Cars

Find more Cars
Nissan Magnite (HT Auto photo)
₹4.99 - 10.05 Lakhs**Ex-showroom price
Add to compare
Check latest offers
It's Quiz Time ! Can you guess the Car brand taglines?
PLAY NOW
Maruti Suzuki Celerio (HT Auto photo)
₹5.15 - 6.94 Lakhs**Ex-showroom price
Add to compare
Check latest offers
Hyundai Grand I10 Nios (HT Auto photo)
₹5.19 - 8.52 Lakhs**Ex-showroom price
Add to compare
Check latest offers
Tata Tigor (HT Auto photo)
₹5.39 - 7.82 Lakhs**Ex-showroom price
Add to compare
Check latest offers
Maruti Suzuki Wagon R (HT Auto photo)
₹5.39 - 7.1 Lakhs**Ex-showroom price
Add to compare
Check latest offers
Tata Altroz (HT Auto photo)
₹5.44 - 9.63 Lakhs**Ex-showroom price
Add to compare
Check latest offers

Some car makers say they expect chip shortages to ease in the second half of 2022, although some automotive chipmakers have cautioned that a recovery could take longer.

Also Read : Meet Nissan's ‘smellmaster’ responsible for checking odour of new vehicles

The company raised its operating profit forecast for the year to March 31 by 17% to 210 billion yen ($1.82 billion) helped by cost cutting that improved margins and a weaker yen that bolstered the yen value of overseas sales.

That outlook is higher than a mean 194 billion yen profit based on estimates from 20 analysts, Refinitiv data shows.

The scarcity of cars for consumers to buy also means that Japan's No. 3 carmaker has been earning more per car because it no longer needs to offer large financial incentives to lure consumers, particularly in the U.S.

Japan's No. 3 carmaker, maintained its global full-year sales target of 3.8 million vehicles after cutting it from 4.4 million in November.

"I am hoping we can get more semiconductors," Nissan Chief Financial Officer Stephen Ma said at the briefing.

Operating profit for the three months to Dec. 31 almost doubled to 52.2 billion yen ($451.8 million), exceeding an average 35.8 billion yen profit estimated by nine analysts, Refinitiv data shows.

Retail volume in the quarter shrank by 16.3% from a year ago to 904,000 vehicles, with the biggest drop in the United States, which fell 19.8%.

First Published Date: 08 Feb 2022, 16:07 PM IST
Recommended for you
View all
NEXT ARTICLE BEGINS
Shopping Bag Shop Now
55% OFF
SOFTSPUN Microfiber Cloth - 4 pcs - 40x40 cms - 340 GSM Grey- Thick Lint & Streak-Free Multipurpose Cloths - Automotive Microfibre Towels for Car Bike Cleaning Polishing Washing & Detailing…
Rs. 269 Rs. 604
19% OFF
Involve Your Senses One Musk Organic Car Perfume, Involve Your Senses Strong Fiber Air Freshener to Freshen'up Your Car - IONE01-40 g,Car Accessories interior car perfumes and fresheners
Rs. 324 Rs. 399
73% OFF
pTron Bullet Pro 36W PD Quick Charger, 3 Port Fast Car Charger Adapter - Compatible with All Smartphones & Tablets (Black)
Rs. 349 Rs. 1,299
14% OFF
Jopasu Car Duster
Rs. 749 Rs. 869

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city