Nissan has updated its annual outlook to showing an operating profit rather than a loss this week, largely due to impressive auto sales in China which helped boost the automaker’s quarterly earnings above expectations.
The Chinese auto market has been growing steadily in recent years, and a recent tax incentive for small cars has helped Nissan, which sells two very popular compacts in that market. The same tax incentives have also helped other Japanese automakers as well, including Toyota which coincidentally has also announced this week that their sales outlook for the year looks a bit more optimistic than originally predicted.
Overall Nissan has raised its fiscal year sales target to 3.3 million vehicles. Consumers shopping for a Framingham Nissan Versa suggested that the news is certainly an indication of the automaker’s ability to generate a return on investments in China. But according to Auburn Used Cars, the news may also indicate strength in its product offerings and Nissan’s ability to weather the current economic downturn.
With healthy profits at year’s end suddenly a new possibility, executives at Nissan may have more options with cash on hand. Despite sales slumps in the U.S. market, perhaps this may signal an opportunity for resources to be funneled stateside should the momentum in emerging marketing continue while Connecticut Nissan and others remain hopeful that the worst is behind them. However, one change that is likely to continue is the shifting of production facilities away from Japan due to the weak yen.
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See more Nissan-Renault sales figures here shortly.
