Nissan Motor Co, Japan’s third-biggest automaker, revised its annual outlook to a profit from a loss on Wednesday as soaring sales in China helped drive quarterly earnings beyond the market’s expectations.

Nissan had been expected to lift its forecasts after it cranked up its sales target in the fast-growing Chinese market by nearly a fifth in September as Beijing’s tax incentives for smaller cars boosted demand for models such as the Tiida and the Sylphy.

Most other Japanese rivals have also lifted their annual forecasts as stimulus measures by governments around the world have provided at least a temporary boost to demand.

Nissan said it now expects to sell 3.3 million vehicles globally in the year to March, raising its forecast by 7 percent.

It’s a strong showing, demonstrating both Nissan’s ability to manage through the economic crisis as well as the returns from its investments in emerging markets, particularly China, said Marc Desmidt, chief operating officer of Asian equities at BlackRock.

Having said that, an important factor to watch out for is the sustainability of consumer demand as government stimulus around the world begins to come to an end.

Nissan, owned 44 percent by Renault SA, now expects an operating profit of 120 billion yen ($1.3 billion) in the year to March, instead of the 100 billion yen loss it had forecast previously.

Earnings made in China are counted in Nissan’s operating profits, unlike those at Toyota Motor Corp and Honda Motor Co, which report under U.S. accounting rules.

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