Nissan Motor Co. is on track to achieve the operating profit margin target it laid out in its turnaround plan despite recent parts shortages that have hammered Japan¡¯s auto industry, Chief Executive Officer Makoto Uchida has said in an interview.

The carmaker will be able to achieve an operating profit margin of 2% or more for the fiscal year ending March, thanks to efforts to cut fixed costs, according to Uchida. ¡°We¡¯re gaining traction,¡± he said Monday at Nissan¡¯s headquarters in Yokohama.

Achieving the target set out last year in the ¡°Nissan Next¡± midterm plan would be a positive sign that the carmaker is holding up despite the shortages plaguing the auto industry.

Toyota Motor Corp. adjusted its September and October output because the spread of COVID-19 in Southeast Asia has disrupted its access to semiconductors and other key parts. Honda Motor Co. said its production lines in Japan are operating at about 40% of its initial plan for the August to September period.

Nissan¡¯s July forecast for revenue of ?9.75 trillion ($87.7 billion) suggests an operating margin outlook of about 1.5% for the current fiscal year. Analysts, on average, are forecasting 1.8%. Given that Nissan¡¯s midterm plan also includes operating profits from its China business, there¡¯s a possibility that it may reflect a higher margin when complete figures are released.

Nissan is more than a year into a turnaround plan that involves cutting fixed costs and work related to a dozen new vehicles it¡¯s planning to bring to market. Citing strong vehicle sales, the automaker is forecasting a return to annual profit for the first time in three years.

Like other automakers, Nissan is also being ¡°greatly impacted¡± by the parts shortages and conditions remain unclear, Uchida said. ¡°Amid all that, the momentum of what we¡¯ve done with Nissan Next is steadily bringing results,¡± he said.