– Nissan’s global sales dropped 5.5% in August 2024, marking the fifth consecutive monthly decline.
– Sales in China fell 24% as local competition intensified, and US sales dipped 0.1%.
– Q3 sales in Canada are up 13.86% and 14.75% YoY.
Nissan faces serious hurdles as sales in its key markets, the US and China, continue to slide. The company reported a 5.5% decline in global sales in August 2024, marking its fifth consecutive monthly decrease. This decline raises concerns that Nissan may fall short of its already reduced profit forecast for the fiscal year.
2025 Nissan Kicks vs. Rogue: Nissan Compact Crossover Showdown
The automaker’s difficulties are most pronounced in China and the US, two markets that account for nearly half of Nissan’s global sales. In China, sales dropped by a staggering 24% as Nissan faces increased competition from domestic carmakers, rapidly gaining ground by offering electric vehicles (EVs) with advanced technology that appeals to local consumers. Nissan’s ongoing struggles in China have prompted the company to close a plant and reduce production capacity in the country.
Meanwhile, Nissan’s challenges differ in the US, where Chinese vehicles are not a significant factor due to tariffs. Despite the rising popularity of gasoline-electric vehicles in the North American market, the company has no hybrid models. The Nissan Ariya EV isn’t moving either, even with the automaker’s low lease deals. As a result, Nissan saw a 0.1% dip in US sales, its first monthly decline since April 2024.
As for Canada, Nissan’s third-quarter sales figures show significant growth across multiple models in 2024. The Nissan Rogue led with 8,080 units sold, reflecting a 17.89% increase over the same period in 2023. The Nissan Kicks saw remarkable growth, with 5,831 units sold, a 68.04% rise from last year. The all-new 2025 Nissan Kicks, which arrived in Canadian showrooms at the end of September, has already contributed 383 units to this total. The Nissan Sentra also posted impressive results, with 3,714 units sold in the third quarter, a 72.66% increase compared to 2023. Additionally, the Nissan Ariya had its best quarter ever, selling 1,201 units, an increase of 101.5% year-over-year.
2025 Nissan Kicks First Drive Review: A Hard Kicking Entry in the Small SUV Market
Looking ahead, Nissan has committed to introducing seven new hybrid and electric models in North America by 2028. However, analysts question whether consumers will remain loyal to the brand long enough to see these new offerings, given the current lack of hybrid options and the competition from other automakers making strides in the EV sector.
Nissan’s financial situation has deteriorated significantly, with the company reporting a 99% drop in operating profit in the last quarter. As a result, Nissan lowered its profit forecast for the fiscal year ending in March 2025 by 12%, to ¥500 billion ($3.5 billion), and reduced its sales target to 3.65 million units. The company’s stock has also been hit hard, with shares falling by 27% in 2024 alone.
Despite these challenges, Nissan is taking steps to stabilize its position. The company plans to repurchase ¥79.9 billion worth of its shares from Renault. Additionally, Nissan is collaborating with Honda on software and electric vehicle development, a partnership that could bolster its competitiveness in the growing EV market.
Source: Bloomberg
