In the first half, the company's net revenue fell 2.1% to 5.53 trillion yen. Operating profit fell 25.4% to 210.3 billion yen, equivalent to an operating profit margin of 3.8%. This was largely due to a planned decrease in wholesale volume as part of the company's ongoing efforts to reduce dealer inventory levels and improve the quality of sales. Thanks to the strength of Nissan's operations in China, net income fell less steeply, declining 10.9% to 246.3 billion yen.
The company's overall operations improved steadily in the first half despite consistently challenging market conditions. Optimisation of global dealer inventory levels is ongoing, and to that end, planned adjustments were made to wholesale volumes in the second quarter. This resulted in a decrease in revenue, although retail sales volumes remained essentially the same as the previous year.
On a regional basis, substantial progress was made in improving the quality of sales by reducing inventories and optimising incentive levels in the US market. Sales in Japan recovered from the impact of last year's final vehicle inspection issue. Meanwhile, sales volumes in Thailand, the Philippines and Latin America, in particular, increase substantially. The company's operations in China also performed well during the period. Nissan will continue efforts to strengthen its business, with the aim of ensuring that performance recovers in the second half.
For the six month period to Sept. 30, 2018, Nissan's global vehicle sales fell 1.8% to 2.68 million units. This was equivalent to a global market share of 5.8%, down 0.2 percentage point from a year earlier.
In Japan, Nissan's sales rose 0.5% to 285,000 vehicles, equivalent to a market share of 11.55, up 0.1 percentage point from a year earlier, even as Japan's total industry volume remained little changed at 2.48 million vehicles. Minivehicle model changeovers partly impacted sales figures. However, sales increased from a year earlier thanks to strong demand for models that embody the company's Nissan Intelligent Mobility vision, including the new Nissan LEAF electric vehicle, the Serena e-POWER minivan, which went on sale in March, and the Nissan Note compact car, which led registered vehicle sales in Japan in the first half of the fiscal year.
In China, where Nissan reports figures by calendar year, vehicle sales rose 10.7% to 720,000 units, representing a market share of 5.4%, up 0.2 percentage point from a year earlier. Strong demand for models including the Nissan Sylphy, X-Trail and Kicks, as well as the Venucia D60, drove the increase.
In the US, Nissan's sales fell 9.1% to 709,000 vehicles, equivalent to a market share of 8.1%.
Nissan sales in Europe, including Russia, fell by 12.1% to 330,000 vehicles, equivalent to a market share of 3.4%. Sales in Russia increased 2.4% to 50,000, equivalent to a market share of 5.6%.
In other markets, including Asia and Oceania, Latin America, the Middle East and Africa, Nissan's sales rose 4.3% to 407,000 vehicles. Specifically, sales volume increased substantially in Thailand, the Philippines and Brazil.
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