Nissan, Japanese major auto maker reported marginal raise in yearly profit with net income up to 3.4bn dollars. Its global revenue grew up by 2.3%. But sales in its major market China fall by 5.3% summing up to 1.15 million units. This fall in sales volume can be contributed to a row between the two nations.
China is the major market for Nissan cars and makes up to ¼ of the Japanese auto maker’s global sales volumes. Due to a diplomatic row between the two nations, Japanese brands were boycotted by Chinese consumers last year. The spat downtrend Nissan’s car sales in Japan. However, sales were back on track in April reporting increased sales in Y-o-Y basis. It is expected, demand in the Chinese market will be back on track by the end of 2013.
European market sales look lacklustre with 7.5% dip to 6,60,000. The EU market is likely to remain weak next year too with growing economic troubles in the region. Carlos Ghosn, head of both the Japanese firm and France's Renault SA told, "I think 2013 is going to be tough and I don't foresee any growth in Europe probably before the end of (Nissan's) mid-term plan, which means not before 2016, or even later."
Globally sales increased up to 4.9 million units, up by 1.4% from the last fiscal year. Nissan expects net profit to increase by 23% to 420bn yen in the current financial year.