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Nissan (NSANY) Aims to Grow Market Share Outside America


Nissan Motor Company NSANY has reported that it is anticipating vehicle sales growth in a few markets to outperform the industry, per Reuters. This Japanese automaker expects to outshine in Asian and African markets. This is critical for Nissan as it is dealing with adversity in the United States, due to declining sales figure.

In the past few years, the company was focused to increase its market share in the United States, in which it roughly doubled vehicle sales since 2010. However, doubling sales, by offering huge discounts, led to declining operating profits for Nissan. This has prompted the automaker to rethink its strategy and reduce production in North America. (Read more: Nissan to Lower North American Output, Raise Profitability)

Currently, the company is aiming for expansion in China, Africa, Middle East and India to boost growth, as well as to improve profitability in North America. Moreover, Nissan is planning to enter Pakistan and Turkey, in which it has no presence as of now.

Nissan Motor Co. Price and Consensus

For India, one of Nissan’s focus markets, the company is depending on more sport utility vehicles (SUVs) and low-cost Datsun-branded vehicles. The country has been observing rise in sales of SUVs, driven by increasing spending power of consumers.

For South Africa, the company will focus on selling more passenger cars and fewer pick-up trucks. Management anticipates market share to more than 15% in the country by 2022 compared with 10% recorded in 2017. Similarly, in Saudi Arabia, the figure is expected to increase by 14% in 2022 compared with 7% recorded in 2017 end.

Price Performance

In the past six months, Nissan’s stock has moved up 2.7%, outperforming 0.2% increase of the industry it belongs to.

Zacks Rank & Stocks to Consider

Currently, Nissan has a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are General Motors Company GM, Ferrari N.V. RACE and Peugeot S.A. PUGOY, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

General Motors has an expected long-term growth rate of 5.5%. Shares of the company have risen 28.5% over the past year.

Ferrari has an expected long-term growth rate of 17.3%. Shares of the company have risen 64.5% over the past year.

Peugeot has an expected long-term growth rate of 19.2%. Shares of the company have risen 23% over the past year.

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