Nissan Motor Co. reported a net loss of 670.9 billion yen for the 2024 fiscal year (April 2024 to March 2025), marking its worst performance in 25 years, with net sales of 12.6 trillion yen. The company has opted not to release operating profit forecasts for the fiscal year ending March 2026.
Nissan plans to cut 20,000 jobs globally by the 2027 fiscal year (April 2027 to March 2028), including 9,000 layoffs announced in November last year, representing about 15% of its workforce. Additionally, the company aims to reduce its factories from 17 to 10 and decrease production capacity from 3.5 million to 2.5 million vehicles by 2027.
Challenges Across Japanese Automakers
The Japanese automotive industry is facing significant headwinds. Major manufacturers, including Honda, Toyota, Mitsubishi, and Mazda, have reported declining profits compared to the previous year.
Honda Motor Co., Japan¡¯s second-largest automaker, reported a 12.2% decline in operating profit to 1.21 trillion yen for the 2025 fiscal year (ending March 31, 2025). For the 2026 fiscal year, Honda projects sales revenue of 20.3 trillion yen, down 6.4%, and an operating profit of 500 billion yen, a 58.8% drop. In the fourth quarter of 2024 (ending March 31, 2025), operating profit fell 76% to 735.7 billion yen, and net profit plummeted 87% to 305.7 billion yen. Honda cited U.S. tariffs and a stronger yen as factors contributing to nearly $3 billion in losses.
Mazda Motor Corp. delayed its 2025 fiscal year (April 2025 to March 2026) financial forecast due to uncertainties from U.S. tariffs. Its 2024 fiscal year net profit fell 45.1% to 114 billion yen.
Mitsubishi Motors Corp. reported flat net sales of 2.79 trillion yen for the 2024 fiscal year (April 2024 to March 2025). Operating profit dropped 27.3% to 138.8 billion yen, and net profit fell 73.5% to 41 billion yen.
Toyota Motor Corp. recorded 10.11 million vehicle sales for the 2025 fiscal year, down 0.7%, with operating revenue of 48.04 trillion yen, up 6.5%, and net profit of 4.77 trillion yen, down 3.6%. For 2026, Toyota forecasts an operating profit of 3.8 trillion yen and a net profit of 3.1 trillion yen, a 34.9% decline, primarily due to U.S. tariffs and yen appreciation.
Toyota President Koji Sato noted that the automotive industry is undergoing significant operational changes, particularly in global trade dynamics.
