Nissan 2025 Production Drops 5.7% Despite December Uptick

Nissan said its global production increased in December 2025, even as full-year production, sales and exports declined, reflecting continued pressure on demand and the impact of restructuring measures across its global operations. The figures, released from the company’s headquarters in Yokohama, Japan, highlight a short-term improvement at the end of the year set against a broader annual contraction in output and shipments.

Global production reached 241,227 vehicles in December, an increase of 10.7% compared with the same month a year earlier. Nissan said production outside Japan rose 16.6% to 194,896 vehicles, supported by higher output in key overseas markets. Domestic production, however, declined 8.5% year over year to 46,331 units, reflecting continued adjustments at Japanese plants. Nissan said overseas production exceeded year-earlier levels, while output in Japan declined.

For the full January–December 2025 period, global production totaled 2.95 million vehicles, a decline of 5.7% from the previous year. Production in Japan fell 13.9% to 565,444 vehicles, while production outside Japan declined 3.5% to 2.38 million units. The figures underscore Nissan’s reliance on overseas manufacturing operations as it scales back domestic output in response to weaker demand and cost pressures.

Global sales trends broadly mirrored production patterns. Nissan reported December global sales of 272,782 vehicles, down 6.7% year over year. Sales in Japan, including minivehicles, declined 10% compared with the prior year. Registered vehicle sales in Japan fell 20.5%, while minivehicle sales increased 5.9%, reflecting uneven demand across segments. Nissan said gains in minivehicle sales partially offset declines in other categories.

Sales outside Japan declined 6.4% in December to 244,443 vehicles. North America was a notable exception, with December sales rising 12.7% to 118,671 vehicles. Nissan said gains in the United States, Canada and Mexico supported regional growth, despite broader softness in other international markets. Europe and China continued to weigh on global performance amid intensifying competition and slowing demand.

For the full year 2025, global sales declined 4.4% to 3.2 million vehicles. Nissan said sales for the  January–December period fell from the previous year, reflecting ongoing challenges across key regions. Sales in Japan, including minivehicles, declined 15.2% for the year, while sales outside Japan decreased 2.6%, highlighting continued weakness across most major markets.

Exports from Japan declined sharply during the period. Nissan reported December exports of 32,226 vehicles, down 21.8% year over year. For the full year, exports from Japan fell 17.3% to 329,415 vehicles. The decline was driven by lower shipments to North America and Europe, reflecting reduced overseas demand and Nissan’s efforts to better align production with market conditions.

The production and sales figures were released as Nissan continues to navigate financial pressure. The automaker reported a net loss of US$1.44 billion in the first half of fiscal year 2025. The company also recorded an operating loss of US$180.7 million, according to its earnings report released on Nov. 6. Nissan said the results were driven by lower income, asset impairments and restructuring costs.

Despite the losses, Nissan reported global sales of 1.48 million vehicles in the first half of the fiscal year. Net revenue for the period totaled US$36.4 billion. The company maintained its full-year revenue forecast of US$76.0 billion but said operating profit is expected to break even, excluding the impact of US tariffs. Nissan estimated tariffs could result in a full-year operating loss of nearly US$1.8 billion.

The financial results follow a period of declining sales and production adjustments that began in 2024. Nissan previously reduced global output, closed manufacturing plants and eliminated about 9,000 positions worldwide. The company also offered buyouts to US production workers. In the first half of fiscal 2024, Nissan reported a 90% drop in operating profit, underscoring the depth of its operational challenges.

Management changes in early 2025 marked a strategic reset. Nissan removed Chief Executive Makoto Uchida and several senior executives after a proposed merger with Honda Motor collapsed. Ivan Espinosa, a 20-year Nissan veteran and former chief planning officer, assumed the CEO role on April 1. Under his leadership, Nissan introduced the “Re:Nissan” recovery plan in May.

The recovery plan focuses on cost reductions, operational efficiency and balance sheet improvement. Key measures include the sale and  leaseback of Nissan’s corporate headquarters in Yokohama. Nissan set a cost-reduction target of US$1.63 billion and aims to return to profitability in fiscal 2026. The company said it achieved more than US$522 million in cost savings in the first half of fiscal 2025 and expects to exceed US$978 million by the end of the fiscal year on March 31, 2026.

Looking ahead, Nissan faces continued headwinds. The company reported weaker performance entering fiscal 2026, with first-half revenue declining 6.8% year over year to US$36.4 billion and an operating loss of US$180 million. The decline reflects slower global retail sales, particularly in Asian markets outside Japan, where competition from Chinese automakers has reduced Nissan’s market share. Higher spending on electric vehicle development has also increased operating costs.

Analyst estimates compiled by Visible Alpha point to further pressure. Consensus forecasts call for full-year fiscal 2026 revenue to decline 4% to US$79.3 billion. North America revenue is expected to fall 5% to US$40.3 billion, while revenue in Asia excluding Japan is forecast to decline 6% to US$15.0 billion. Japan and Europe revenue are projected at US$12.3 billion and US$10.4 billion, respectively.

Unit volumes are also expected to weaken. Retail sales are projected to decline 14% to 2.9 million vehicles in fiscal 2026. Wholesale volumes are forecast to fall 3% to 2.6 million units, while total production is expected to decline 5% to 2.9 million vehicles, reflecting continued demand uncertainty and ongoing production adjustments.

In Mexico, Nissan led annual vehicle sales in 2025, selling 274,661 units, followed by General Motors and Volkswagen.