Recently, the results of the seven major Japanese automakers from April to September of this year have all been released, among them, Toyota, Honda, Nissan, Mitsubishi and Mazda five car companies, net profit fell compared with the same period last year. Nissan, in particular, saw its net profit plunge 94% from a year earlier to just 19.2 billion yen (900 million yuan) .
In June, a number of Japanese car companies were forced to suspend production and sales of some models as they became the focus of a scandal over falsified test data, according to media reports. This not only directly affected sales, the huge rectification costs further squeezed profit space, the public also have a sense of distrust of Japanese car companies. Japanese car companies are now facing difficulties both at home and abroad.
Nissan’s net income plunged
On November 7, Nissan said it would cut 9,000 jobs and 20 per cent of global production capacity in response to falling sales in key markets. The move came after the company reported a net loss for the second quarter and cut its annual profit forecast.
Nissan reported a net loss of Y9.3 bn in the second quarter, compared with a net profit of Y190.7 bn a year earlier, and cut its full-year operating profit forecast for 2024 to Y150BN ($975M) , that compares with expectations of Y500BN.
Like other carmakers, Nissan has been struggling in key markets because of fierce price competition and shifting consumer interest in traditional petrol-powered vehicles.
Shares in Nissan have fallen 27% this year, putting it behind domestic rivals Toyota and Honda. Its shares fell sharply in July after weak first-quarter results and have yet to recover.
Toyota’s profits halved
Meanwhile, Toyota Motor Corp. , the world’s largest automaker, recently reported 2024 that production shutdowns due to certification scandals and recalls hurt auto sales from July to September, the company’s profit fell to less than half that of the same period last year.
Toyota’s quarterly sales rose slightly to 11.44 trillion yen in the july-september period from 11.43 trillion yen a year earlier, while its quarterly net profit fell 55 percent to 573.7 billion yen, the data showed. Toyota sold 2.3 million vehicles globally in the july-september period, below market expectations of 2.4 million.
In the april-september 2024, Toyota’s sales rose 5.9 percent to y23.28 trillion, while operating profit fell 3.7 percent to y2.46 trillion Net profit fell 26.4 percent to 1.9 trillion yen, the first decline in Toyota’s six-month results in two years.
Toyota has been ordered to halt production of some models after allegedly falsifying and mishandling data in safety certification tests, the report said. According to the investigation, the violations involved three mass-produced models, including the corolla Fielder and the corolla Axio, and four discontinued models.
Toyota sold 4.556 million vehicles in the first half of its fiscal year, down 4 percent from the same period last year, as production was halted to address certification issues. Markets in Japan, North and Europe all declined over the same period.