Q2 Acceleration and Regional Strength in North America
Q2 sales excluding China improved to -3.6% YoY vs H1 -7.3% YoY; North America delivered 2.0% growth in H1 and 6.7% growth in Q2, U.S. flat, Mexico +8% with maintained market-share leadership.
China Turnaround and N7 Demand
China, while down 17.6% in H1, has posted year‑on‑year growth since June (first time in 15 months); N7 model strong with ~40,000 units sold in China and management expects China sales to exceed previous outlook by 13% in H2.
Maintained Full‑Year Volume and Clear H2 Recovery Plan
Full year sales forecast unchanged at ~3.25 million units (‑2.9% YoY); production guided around 3.0 million units with expectation of a stronger second half driven by new products, marketing initiatives and operational improvements (third shift at Kyushu).
Solid Liquidity and Debt Management
Total liquidity ~JPY 3.6 trillion (JPY 2.2 trillion cash + JPY 2.3 trillion unused credit lines); net cash close to JPY 1.0 trillion at period end; year‑end automotive debt forecast ~JPY 2.1 trillion and successful refinancing of JPY 700 billion maturities.
Re:Nissan Cost Savings Momentum (Fixed and Variable)
Over JPY 80 billion of fixed cost savings achieved in H1; global target JPY 500 billion savings; variable-cost initiatives progressed to identify potential JPY 200 billion (up from JPY 75B in May and JPY 150B in July) with 4,500 ideas generated and many moving to implementation.
R&D Discipline and Operational Efficiency Gains
R&D spending controlled at JPY 275 billion via project deferrals and shorter development schedules; monozukuri improvements and purchasing efficiencies delivered ~JPY 67 billion benefit; engineering cost per hour reduction progressing (current ~12% vs 20% target).
Product and Partnership Wins
Pipeline of product launches (9 new models through FY2027), strong early demand signals (e.g., ~15,000 preorders in ~6 weeks for a recently launched model), and technology/market partnerships (Boldly, Premier Aid, KQ, WAVE, Huawei integration in Tiana) supporting future competitiveness.
Reduced Near‑Term Operating Loss vs Expectations
First half consolidated operating loss was JPY 28 billion — presented as better than management expectations for H1, helped by one‑time positives (lower warranty and emission expenses) and G&A improvements.