Nissan Records USD3.38B Loss as Tariffs, Competition Crush Profits

(MENAFN) Nissan Motor Co. hemorrhaged 533.1 billion yen (approximately 3.38 billion U.S. dollars) in net losses during fiscal 2025, as punishing U.S. tariffs, persistent inflation, and fierce market competition tightened their grip on the embattled Japanese automaker.

For the fiscal year ending March, Nissan recorded an operating profit of 58.01 billion yen — a 16.9 percent year-on-year decline — while total revenue contracted 4.9 percent to 12.01 trillion yen. Worldwide vehicle sales dropped 5.8 percent to 3.15 million units, with the critical U.S. market shedding 3.4 percent to reach 906,000 units sold.

The automaker's woes deepened following Washington's decision to hike tariffs on Japanese automobile imports from 2.5 percent to 27.5 percent in April 2025. Subsequent negotiations brought the rate down to 15 percent by July, with the revised figure formally taking effect in September 2025. Nissan estimated the tariff burden alone carved 286 billion yen from its operating profit.

The fiscal 2025 shortfall follows an even steeper net loss of 670.9 billion yen the prior year. In response, Nissan has accelerated an aggressive corporate overhaul — shuttering seven manufacturing plants across domestic and international operations and targeting the elimination of 20,000 jobs worldwide by fiscal 2027, according to media.

Despite back-to-back annual losses, Nissan struck a cautiously optimistic tone for the road ahead, projecting a return to profitability in the current fiscal year through March. The company forecast a net profit of 20 billion yen, a 3.4-fold surge in operating profit to 200 billion yen, and net revenue climbing 8.3 percent to 13 trillion yen.
(1 Japanese yen equals approximately 0.0063 U.S. dollars)

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