It also said it expected an operating loss of ¥30 billion for the first six months of the fiscal year, which runs through September.

Nissan reported a net loss of ¥671 billion for the financial year to March 2025, and launched an effort to cut 20,000 jobs, some 15% of its workforce.

The first-half operating loss of ¥30 billion is better than the automaker had been forecasting. Nissan attributed it to one-time benefits including lower costs to emission regulations. It said it had also deferred some project costs to the second half of the year.

“While our first-half results reflect temporary benefits and payback from cost-saving initiatives, we anticipate ongoing challenging competitive environment in the second half, supply chain risks and the seasonality of business,” said chief financial officer Jeremie Papin.

The expected worsening of its performance in the second half of its fiscal year reflected “anticipated challenges in the second half due to supply chain risks, foreign exchange volatility, tariffs, and other external factors,” the automaker said in a statement.

It said it now expected sales of ¥11.7 trillion in 2025-2026, down from its initial estimate in May of ¥12.5 trillion.

Nissan has faced numerous speed bumps in recent years — including the 2018 arrest of former boss Carlos Ghosn, who later fled Japan concealed in an audio equipment box.

A merger with Japanese rival Honda had been seen as a potential lifeline but talks collapsed in February when the latter proposed making Nissan a subsidiary.

Of Japan’s major automakers, Nissan was seen by analysts as likely to be the most severely hit by US President Donald Trump’s tariffs on imported vehicles.