Nissan said “absolutely scary” increases in the cost of steel and other raw materials as well as the stronger yen and flagging US market would result in a 30 per cent fall in profits in the coming year, as it failed to give firm guidance on earnings in a new five-year business plan.

Japan’s third-biggest carmaker, which is 44 per cent owned by France’s Renault, missed its profit target for the second year running in the 12 months to the end of March, reporting operating profit of Y790.8bn ($7.5bn), up 1.8 per cent but below a target of Y800bn. It fell short of sales, profit­ability and other goals set under a previous three-year plan.