Nissan sells 1.35mn units in Q1 FY18, up 4%

Japanese automaker, Nissan, has reported global sales of 1.35 million units in Q1 FY 2018 (Q1 FY2017: 1.28 million units) an increase of 5 percent. Revenue was 2.76 trillion yen (Rs 1383 trillion) an increase of 4 percent (Q1 FY2017: 2.65 trillion yen) YoY.

As per the company the despite rising raw material costs, adverse foreign exchange impacts, and slower than anticipated growth in key markets costs the financial results came in line with company expectations.

Sales

Sales in Japan increased by 45.6 percent, US sales up more than total industry volume at 1.2 percent, sales in China up 5.3 percent, sales in Europe up percent, and sales in other markets, including Asia and Oceania, Latin America, the Middle East and Africa up 1.2 percent.

The company’s operating profit was 153.3 billion yen (Rs 7956 crore), and expectations of improved profitability for the remainder of the year driven by its products.

Operating profits declined 12.8 percent compared to the prior year primarily due to the conditional change resulting from the divestiture of Calsonic Kansei, rising raw material costs, and adverse foreign exchange impacts. Net income was down 1.1 percent.

Sales performance

As per the company sales in Japan continued to improve following the resumption of Kei car sales and encouraging strong demand for registered vehicles, including models such as the Note e-POWER and the Serena with ProPILOT autonomous drive technology. Nissan saw unit sales rise by 45.6 percent to 131,000 units, resulting in a market share improvement of 2.6 points to 10.9 percent.

In the U.S., Nissan’s sales increased 1.2 percent to 403,000, equivalent to a market share increase of 0.4 points to 9.1 percent, amid continued demand for SUVs including the Rogue and recently launched Rogue Sport.

Nissan unit sales in China, which reports figures on a calendar year basis, increased 5.3 percent to 314,000 units. The market share in China remained flat at 4.7 percent for the quarter.

In Europe, including Russia, Nissan’s sales totaled 185,000 units, an increase of 1.1 percent. Excluding Russia, Nissan’s sales decreased 0.2 percent to 162,000 units due primarily to planned model changeovers. Nissan’s market share in Europe was flat at 3.6 percent.

In other markets, including Asia and Oceania, Latin America, the Middle East and Africa, Nissan’s sales increased 1.2 percent to 188,000 units despite volatile demand in some markets.

Outlook

The company expects to sell 5.83 million units in fiscal 2017 as models such as the Rogue Sport, refreshed Qashqai and X-Trail, Kicks, Navara, and the all-new Nissan LEAF are expected to contribute to sales growth for the year as a whole.