Nissan trims loss forecast as auto markets rebound

Japan's No. 3 automaker Nissan Motor Co has trimmed its loss forecast for the current financial year by more than a third as the automaker benefited from a rebound in demand led by China.

The rebound in the world's biggest auto market following a Coronavirus induced slump has helped Nissan and other global carmakers claw back sales. A shortage of semiconductors however could dampen that recovery as it forces Nissan and its peers to curtail some output.

Now Nissan expects an operating loss of 205 billion yen in the year ending March 31 compared to an earlier 340 billion yen loss forecast. It also cut its full-year unit sales target to 4.015 million vehicles from 4.165 million.

The revised operating loss is smaller than an average 230.1 billion yen loss forecast by 19 analysts surveyed by Refinitiv Smart Estimate.

In December, China's auto market grew by 6.4 per cent as it continued to lead the industry's recovery from the COVID-19 pandemic.

The global chip shortage had forced Nissan to reduce production of its Note compact car last month at its Oppama plant in Kanagawa prefecture, Japan.

The car maker is also making short-term production adjustments at its North American operations including three non-production days on the truck line at its Canton, Mississippi facility.

Nissan's loss revision comes after Mitsubishi Motors Corp also trimmed its operating loss forecast for the year through March on cost reductions last week.

Nissan has promised to launch a slew of vehicles in Japan, China and the United States including new electric vehicles to lure increasingly environment-conscious drivers as it draws back from the aggressive global expansion pursued by ousted former boss Carlos Ghosn.