NISSAN MOTOR CO., LTD.
7201・Prime Market・Transportation Equipment
Business
Nissan Motor Co., Ltd., founded in 1933, is a leading Japanese automaker that manufactures and sells Passenger Vehicles & Commercial Vehicles on a global scale. The company has production and sales bases in Japan, North America, Europe, Asia, and other regions, with global retail unit sales of 3,151 thousand vehicles in FY2025 (ending March 2026). While maintaining a collaborative framework through its alliance with Renault and Mitsubishi Motors Corporation, the company operates a Sales Financing Business, including credit and leasing, in addition to its Automotive Business. Its main customers are individual consumers and corporate clients, and it offers a wide range of vehicle lineups including the Infiniti brand.
Business Model
While the Automotive Business manufactures and sells vehicles, generating the majority of revenue, the Sales Financing Business (Auto Credit and Auto Leasing) functions as a stable profit source, with an operating margin of 22.6% and operating profit of ¥297,942 million. The Sales Financing Business promotes vehicle sales while also supporting the group's overall cash flow structure, including a dividend distribution of ¥203,400 million to the Automotive Business in FY2025 (ending March 2025).
Company Strengths
The Sales Financing Business achieved FY2025 net revenue of ¥1,318,002 million, operating profit of ¥297,942 million, and an operating profit margin of 22.6%, functioning as the group's sole stable profit source while the Automotive Business recorded an operating loss. Cumulative dividends from FY2020 through FY2024 reached ¥1,132,800 million, supporting the group's financial foundation.
The company has production sites in more than 10 countries, including Japan, the United States, Mexico, the United Kingdom, Thailand, and Brazil, with consolidated FY2025 sales volume of 2,434,516 units. It maintains retail sales volume of 1,291 thousand units centered on North America, and achieves diversification of procurement and development costs through parts and platform sharing via its alliance with Renault and Mitsubishi Motors.
The proprietary electrified powertrain "e-POWER," launched in 2016, reached cumulative global production of 1.70 million units in 2025. The kei car "Nissan Sakura" has secured the No. 1 position in domestic EV sales for four consecutive years. The company has developed the next-generation "X-in-1" electrified powertrain and begun installing it in production vehicles, with an EV equipped with all-solid-state batteries planned for market launch in FY2028.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥12,685,716 million in FY2024, then declined for two consecutive periods to ¥12,633,214 million in FY2025 and ¥12,007,888 million in FY2026 (down 4.9% year on year). Operating profit plunged from ¥568,718 million in FY2024 to ¥69,798 million in FY2025 and ¥58,005 million in FY2026, with the operating margin remaining at just 0.5%. Net loss attributable to owners of the parent posted large losses for two consecutive periods, at ¥670,898 million in FY2025 and ¥533,095 million in FY2026. External factors such as US tariffs, foreign exchange fluctuations, and intensifying competition in the Chinese market weighed on earnings. Meanwhile, ordinary profit fell 99.5% from ¥210,168 million in the prior period to ¥1,081 million, impacted by the disappearance of equity-method earnings and an increase in interest expenses (¥113,825 million). The fact that free cash flow in the Automotive Business turned positive in the second half of FY2025 is notable as a sign of a bottoming-out.
Growth Strategy
Fundamental cost structure reform through the Re:Nissan plan and achievement of profitability in the Automotive Business in FY2026 (ending March 2026)
Based on the management revitalization plan "Re:Nissan" announced in May 2025, the company is pursuing fundamental reductions in manufacturing costs. As a factor affecting FY2026 (ending March 2026) operating profit changes, a profit increase of ¥340.0 billion is expected from reduced manufacturing costs. An operating profit improvement of ¥11,068 million has already been realized through a change in the useful life of internally used software (from 5 years to 8 years).
Global retail volume for FY2026 (ending March 2026) is projected at 3.30 million units, up 4.7% year on year, with a planned profit increase of ¥155.0 billion from improved sales performance. In FY2025 (ended March 2025), retail volume declined to 3,151 thousand units (down 5.8% year on year), with sales declines continuing across all major markets; recovery through new model launches and optimized incentives remains a challenge.
In response to changes in parts composition (increase in electronic components), the estimation method was changed to reference the most recent service warranty costs, including vehicles still within the product warranty period. This has already resulted in an improvement of ¥36,603 million to the current period's operating profit, contributing to ongoing improvements in cost management precision.
The company is actively promoting the sale of idle and to-be-disposed assets. Proceeds from fixed asset sales in FY2025 (ended March 2025) increased substantially to ¥189,731 million (up from ¥46,320 million in the prior period), with gains on sale of fixed assets recorded as extraordinary income also reaching ¥127,338 million. This simultaneously achieves balance sheet improvement through asset slimming and improved investing cash flow.
The company is at the consideration stage regarding the adoption of International Financial Reporting Standards (IFRS), aiming to improve the transparency and comparability of financial disclosures for global investors. The timing and scope of adoption remain undetermined.
Last updated: July 19, 2026