Nissan shares plunge over China demand worries

STORY: Nissan shares plunged over 11% in morning trade Friday, wiping around $1.8 billion off its market value.

That put the stock on course for its biggest one-day selloff since 2001.

The drop came after a cautious outlook from the carmaker a day before.

Nissan trimmed its sales forecast to 3.55 million vehicles - down from 3.7 million earlier.

It said that reflected mounting competition and logistics issues in key markets.

But it also cited weakening demand in China.

Nissan saw sales there slump 16% last year, alarming analysts over its prospects in the world’s biggest car market.

The firms says it’s taking steps to drive a revival.

That includes focusing on cities and regions where the shift to EVs is happening more slowly.

Chief Financial Officer Stephen Ma says the strategy helped drive a rebound in Chinese sales over the final few months of 2023.

Nissan maintained its outlook for annual profits this year at just over $4 billion, despite expecting to make fewer cars.

It thinks a more profitable mix of products will help it offset the lower production numbers.