By Amara Osei

Nissan Motor posted a net loss of ¥43.5 billion ($275 million) for the quarter ended Sept. 30 and reduced its global vehicle-sales forecast. The revised fiscal-year volume target (annual vehicle-sales target) of 2.97 million to 3 million vehicles covers the 12 months through March 2027, down from 3.15 million and marking the company's second reduction since August.

What changed in the sales forecast?

Nissan said China sales were under more strain than the company had foreseen, citing soft demand, a quicker move toward new energy vehicles than predicted and tougher competition. CEO Ivan Espinosa characterized the Chinese market as one in which volumes were falling steeply, according to The Wall Street Journal.

The latest cut follows Nissan's August reduction of its annual target to 3.15 million vehicles from 3.3 million, which the company attributed to persistent weakness in China. In that April-June period, Nissan reported a ¥3.8 billion net profit, its first quarterly profit in two years.

The sales downgrade follows two successive reductions tied to the same market weakness. Nissan nevertheless kept its full-year profit target unchanged and raised sales expectations for the United States and Japan.

How did quarterly performance compare with expectations?

Net revenue rose 8.2% to ¥3.11 trillion, but operating profit (profit before interest and tax) fell to ¥2.1 billion from ¥51.5 billion. Nissan attributed the decline to the absence of last year's benefit from lower U.S. emissions-related expenses, making the prior-year comparison a central factor in the result.

The net loss narrowed from ¥106.2 billion a year earlier, and Nissan tied the improvement to lower restructuring-related items. The two year-on-year comparisons point in opposite directions: the bottom-line loss narrowed, while operating profit declined from a much higher level.

CNBC reported that analysts expected operating profit of ¥54.9 billion, while The Wall Street Journal put consensus net profit at ¥15.57 billion. Nissan's actual net loss of ¥43.5 billion fell short of both profit benchmarks, and operating profit was also below the ¥54.9 billion estimate.

What guidance did Nissan maintain?

Nissan kept its full-year operating profit forecast at ¥200 billion and its target for automotive net cash (cash minus debt) above ¥1 trillion at year-end. The company expects ¥120 billion of operating profit in the second half, while raising its sales outlook for the United States and Japan.

Nissan also said its Re:Nissan restructuring plan generated ¥110 billion in additional cost savings during the first half. The company reported those savings while maintaining its ¥200 billion profit target and lowering the global sales target, leaving unchanged earnings guidance despite a lower volume assumption.

How is Nissan responding to Chinese competition?

CEO Ivan Espinosa said: "China remains our most significant challenge, and we need to remain agile." He told CNBC that Nissan intends to widen its lineup of China-developed vehicles for export, raising the count to five models from two and aiming for 12 regional market clusters in the "very near term."

Espinosa added: "We can defend ourselves from these very aggressive players by using exactly the same elements that they have: speed, cost, and good technology." The export plan extends the China-developed product strategy to overseas markets, while China remains the principal risk identified by the CEO.

Chief Financial Officer George Leondis identified ending the year with a net profit as Nissan's top priority. Nissan shares were down 29% year to date (from the start of the calendar year). The company will announce a new business plan in February 2027.