Nissan and Honda forecast higher profits due to weaker yen and improved sales. Challenges remain in China’s car market.
Nissan’s Improved Profit Forecast
Nissan Motor and Honda Motor forecasted higher profits, thanks to a weakened yen and a rebound in sales. Despite this positive outlook, challenges persist for Japanese automakers in China.
Nissan’s Outlook and Initiatives
Nissan reported a significant jump in operating profit and raised its full-year forecast due to the favorable impact of a weak yen and improved global retail sales. The company plans to launch new energy cars in China and introduce locally branded models exclusively for the Chinese market.
Nissan’s Challenges in China
Although Nissan’s retail car sales in China dropped, the company aims to put its China business back on a growth track by launching new initiatives and models. The company faces tough competition from domestic players and sees its models slip in sales rankings.
Honda’s Profit Forecast and Initiatives
Honda raised its full-year profit forecast as it benefited from stronger sales in the United States and a weaker yen, which helped offset declining sales in China. The company also plans to start a driverless ride service in Japan through a joint venture with General Motors and Cruise by 2026.
Challenges for Honda’s Driverless Ride Service
Honda plans to launch a driverless ride service in Japan through a joint venture, despite facing challenges with Cruise, including federal investigations and halting operations in the United States. It aims to make ‘appropriate’ decisions regarding the future of the driverless ride service.