Worldwide Sales Slump Means Nissan Struggles Continue

Nissan is in trouble. The automaker has just reported its sales have fallen for the fifth month in a row, with its sales dropping by a quarter in the largest vehicle market in the world. The company has already slashed its profit forecasts, and while it has pledged to launch a barrage of new product, including hybrids and EVs, a Bloomberg report shows it’s going to be a struggle for the company to reach that greener grass.

Nissan Sales Down Around The World

The latest numbers from the Japanese automaker cover its August 2024 vehicle sales. Sales in the US were down 0.1% to 71,797 despite huge incentives, which is disappointing in a growing market. However, sales in China were down a whopping 24.2% to 49,204. Nissan is down 16.4% from April to August in China, a deficit of approximately 60,000 units. Global sales were down 5.5%. Nissan’s one bright spot on that sales report was in Canada, where sales were up 29%. But with just 8,898 units moved, that puts it at less than half of even the brand’s sales in Mexico.

The sales slump in China isn’t a surprise, says the report. That’s because the brand has closed a plant there and cut production capacity. It is cutting that capacity because of a long sales decline due to a struggle to keep up with Chinese domestic brands that have more high-tech EV offerings than Nissan despite its reveal of four new concepts earlier this year.

The production numbers aren’t reflected in the sales data. Nissan built 15.5% fewer vehicles in August, down 7.4% since April. That shows it doesn’t expect those sales to pick up in the near future and that means trouble. In the States, Nissan is selling loads of EVs. The Ariya is up 54.6% this year, and the Leaf up 30.6 %, but those sales are coming at a significant cost. The Ariya, Nissan’s top-selling EV, is not eligible for federal EV incentives for purchases. To combat that, Nissan is offering leases with up to $13,000 in manufacturer rebates. While that lets Nissan advertise a very attractive $199/month payment, it is cutting into profits. Despite those high incentives to move cars, Nissans are sitting on dealer lots. Automotive News reported in August that Nissan dealers are making 70% less than they were a year before, with 38% losing money.

Nissan Profits Continue To Fall

Nissan’s global profits fell 99% last quarter. As a result, Nissan management cut its full-year profit forecast by 12% to $3.5 billion. Despite that, the automaker plans to repurchase $551 million in shares from Renault, as part of an effort to rebalance the alliance between those two companies and give Renault some much-needed cash for its own operations in China.

Help is coming, if the company and its retailers can wait it out. Nissan has told its US dealers that new cars and trucks are coming, with a new Nissan Kicks arriving now, a new Armada imminent, and seven new hybrids and EVs on the way. But all of those hybrids and EVs will take until 2028 to arrive, leaving Nissan and its dealers with a large number of gas-powered models that are less popular than they were just a few years ago.

Sources:
Bloomberg
,
Automotive News