The automaker was able to lower incentives in the key U.S. market and boost margins in the fiscal quarter that ended Sept. 30 because of growing demand coupled with tight supplies of vehicles due to production cutbacks amid the global chip shortage.
"Two years ago, we had a problem of how to sell, and that is not the problem today," COO Ashwani Gupta told a news conference.
Nissan had also benefitted as it revamps its aging model line-up as part of a business plan to improve profitability by reducing global production and model types by a fifth, he said.
Gupta cautioned that the lack of chips remained "a challenge" as competition for the key component grows among automakers and electronic device makers.
CFO Stephen Ma said Nissan's break even point is now around 3.7 million vehicles a year, down from 4.4 million.
Nissan on Tuesday raised its annual operating profit outlook in a promising sign the automaker is still on track to climb out of the red this year.
The company raised its forecast to an operating profit of 180 billion yen ($1.6 billion) for the fiscal year through March, from 150 billion yen announced in July.
The upbeat forecast comes despite Nissan having to trim production in recent months in response to an outbreak of COVID-19 in southeast Asia that disrupted its access to chips and other key parts.
Resilient demand for cars coupled with a weaker yen are bolstering profitability and Nissan's new outlook underscores confidence from the automaker that these upside factors will continue to offset issues with its supply chain.
Revenue will be 8.8 trillion yen ($78 billion) for the fiscal year, Nissan said, compared with its prior forecast for 9.8 trillion yen. Revenue during the latest quarter rose 1.1 percent to 1.9 trillion yen.