Watch Nissan’s Ivan Espinosa: China Sales Fall, Outlook Cut
Nissan CEO Ivan Espinosa said the carmaker will expand China-developed exports from two models to five as sales there fall. The company cut its full-year sales outlook to 2.97 million to 3 million vehicles and reported a 96% drop in second-quarter operating profit.
Nissan Motor CEO Ivan Espinosa said on Wednesday, November 11, 2026, that the company will rapidly expand exports of vehicles developed in China, as weak demand there forced the Japanese carmaker to cut its annual sales forecast for the second time since August. Viewers can watch Nissan's Ivan Espinosa discuss China, the US and Japan in a Bloomberg interview after the earnings release.
Nissan lowered its global sales outlook for the fiscal year ending March 2027 to between 2.97 million and 3 million vehicles. It had previously forecast 3.15 million. In August it had revised the figure down from 3.3 million units. The company kept its full-year operating profit and net cash guidance.
Second-quarter profit slump
Nissan reported a 96% drop in second-quarter operating profit to 2.1 billion yen ($13 million). Analysts had expected 54.9 billion yen, according to FactSet. The company blamed the fall on the loss of lower US emissions-related expenses that had boosted profit a year earlier.
Net revenue rose 8.2% to 3.1 trillion yen. Results came after the Tokyo market closed. Nissan shares are down 29% so far this year.
China: volumes down 15%
Espinosa described China as "a very complicated environment." He said the total industry volume fell about 22% in the first half, while Nissan's own volumes dropped 15%, with the decline accelerating in the last three months. He pointed to a rapid rise in new energy vehicles.
In a statement, Nissan said "weaker demand, a faster-than-anticipated shift to [new energy vehicles] and intensifying competition are putting greater pressure on sales than initially anticipated."
Espinosa said Nissan currently exports only two China-developed products to two countries. It expects about 16,000 units this fiscal year. He said the company will quickly expand to five vehicle lines and 12 clusters of markets.
He said the company can use the same tools as its rivals. "We can defend ourselves from these very aggressive players by using exactly the same elements that they have: speed, cost, and good technology," he said.
US and Japan on track
Espinosa said the first half gave Nissan confidence it can meet its outlook, but not comfort. He cited sharply higher raw material costs and no change in the Middle East situation.
In the US, he said, the company has focused marketing on tariff-free vehicles built there, which are highly profitable. In Japan, Nissan has launched many new cars and refreshed its lineup. He also pointed to promising performance in Mexico and the Middle East.
Restructuring and next plan
Espinosa, who has led Nissan since April 2025, said the company has achieved 365 billion yen of a targeted 500 billion yen in savings about 18 months into its two-year RE Nissan plan. The plan also includes cutting the global manufacturing footprint and reducing the workforce by 15%.
He said Nissan expects to end the year with more than 1 trillion yen in cash from its auto business and 2.2 trillion yen in cash and equivalents. The company plans to announce a new business strategy in February.
