TOKYO — Nissan Motor’s Chinese operations are expected to generate an all-time high operating profit of about 160 billion yen ($1.27 billion) in the current fiscal year ending in March, beating the previous fiscal year’s record number by 24%.
China is projected to make up 19.2% of Nissan’s group operating profit this fiscal year, which is more than a point higher than the previous fiscal year. Since the Chinese economy is slowing down, the Japanese automaker will likely raise its year-on-year sales of new vehicles by only 6% to 1.3 million. January-May sales are “roughly in accordance with plans,” according to an executive. But smaller vehicles like the Tiida and the Sunny are struggling.
The company, however, is selling more SUVs and other vehicles with high profit margins. The yen’s weakness against the yuan is a contributing factor. The previous fiscal year saw every yuan fetch 17.2 yen, but the yuan is currently trading at about 20 yen.
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