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Japanese automaker Nissan has announced a return to profitability for the upcoming fiscal year, signalling an end to a turbulent period defined by consecutive multi-billion-dollar losses.
Despite finishing the 2025-26 business year with a 533 billion yen deficit, the Japanese automaker claims it has moved ‘beyond recovery’ and is entering a new growth phase.
This optimistic outlook comes as the company continues a massive restructuring plan that includes shuttering factories and cutting 20,000 jobs worldwide by 2028.
The path forward remains challenging as Nissan navigates a volatile global market characterised by new US tariffs, regional conflicts, and intense competition from Chinese electric vehicle manufacturers.
While CEO Ivan Espinosa credits the “Re: Nissan” programme for stabilising the company’s financial foundation, analysts warn that the brand still faces deep-rooted issues.
Specifically, declining product competitiveness in North America and a rapid drop in Chinese sales continue to weigh on the company’s long-term brand power.
In contrast to its domestic rivals, Nissan’s recovery appears more precarious.
While Toyota and Honda are also facing strategic shifts and profit dips, experts note that Nissan’s struggle is tied to its core product strength rather than one-time strategic changes.
As the global automotive industry transitions toward EVs and hybrids, Nissan’s ability to normalise sales and translate new product launches into actual earnings will be the true test of its proclaimed growth phase.
