Nissan shares tumbled over 10% after issuing a profit warning due to fierce sales competition, particularly in the United States.
The Japanese automaker’s net profit for the first quarter dropped 73% year-on-year to 28.6 billion yen ($190 million), well below analyst expectations.
The company has revised its full-year net profit forecast to 300 billion yen ($2 billion), down from 380 billion yen.
CEO Makoto Uchida highlighted challenging first-quarter results and mentioned measures to recover performance, aiming to maximize sales of new models in the second half.
Increased sales incentives and marketing expenses in the US impacted profits, despite steady global sales.
In China, where the market remains highly competitive, Nissan’s performance among international brands was notable, although overall sales struggled.
Nissan plans to launch five new electric or hybrid vehicles in China within the next two years to stay competitive.
The company recently closed a factory near Shanghai to reduce production capacity. Similar challenges face other Japanese automakers like Honda, which is also reducing output in China.
Nissan shares closed down 6.98% after recovering slightly from the initial drop.