Tokyo:Japanese automaker Nissan has reduced its annual vehicle sales forecast, attributing the decision to decreased demand and heightened competition in China.

According to Anadolu Agency – English, the company now anticipates global sales ranging from 2.97 million to 3 million vehicles in fiscal 2026, a decrease from its earlier estimate of 3.15 million. Nissan has identified a more rapid than expected shift towards new-energy vehicles as a contributing factor to the pressure on its Chinese sales, while it has adjusted its expectations upward for the US and Japanese markets.

Nissan's CEO Ivan Espinosa emphasized the challenges posed by the Chinese market, stating, "China remains our most significant challenge, and we need to remain agile." The company's operating profit for the July-September quarter dropped to 2.1 billion yen ($13.2 million) from $324.1 million the previous year, primarily due to the lack of benefits from lower US emissions-related expenses.

Despite these challenges, Nissan's quarterly net loss improved, narrowing to $273.8 million from $668.4 million. The company has maintained its full-year operating profit forecast at $1.26 billion, driven by expectations of new models, increased sales volumes, and an enhanced product mix bolstering second-half earnings. Additionally, Nissan's Re restructuring program achieved $692.3 million in first-half cost savings.

Looking ahead, Nissan plans to unveil a new business plan in February 2027.