Thank you for your participation in our FY 2024 first quarter results meeting. While you're busy today, the competition environment began to normalize as production constraints due to shortage of semiconductors, etc., have been resolved and the inventory has been replenished in general. In our core regions, demand for automobile is sluggish due to delayed economic recovery. Therefore, we recognize the overall business environment surrounding us is becoming increasingly severe.
As shown in the slide, our results for Q1 2024 showed a decrease in both sales and profits on a year-on-year basis due to intensifying sales competition, rising costs associated with inflation, and a temporary increase in quality-related expenses. Net sales were JPY 627.5 billion, almost the same level as in the previous year. Operating profit decreased 21% year-on-year to JPY 35.5 billion, and the OPM decreased 1.4 points year-on-year to 5.7%.
Ordinary profit decreased 31% year-on-year to JPY 42.4 billion, and net income was JPY 29.5 billion. Retail sales were 194,000 units, almost unchanged from the previous year. Please turn to page 4. In this slide, you can see the factors behind the year-on-year changes in operating profit for Q1 FY 2024. In terms of volume and mix selling price, although we promoted initiatives to improve the net revenue strategy, our wholesale volume declined year-on-year due to delayed shipping arrivals in some regions and inventory adjustments.
As a result, operating profit declined by JPY 12 billion year-on-year. Sales expenses reduced operating profit by JPY 9.4 billion, mainly due to an increase in incentives in the U.S. and Thailand, in line with intensifying market competition. Procurement costs, shipment costs improved JPY 2 billion in total, as deterioration in factory expenses and shipping costs was reversed by a reduction in procurement cost.
R&D expenses increased as planned, resulting in a JPY 4.2 billion decrease in operating profit. Other items deteriorated by JPY 10.7 billion due to an increase in general expenses, such as labor costs due to inflation and an increase in quality cost. Regarding foreign exchange rates, the negative impact of the cost currency, Thai baht, was offset by other major currencies, such as U.S. dollar, resulting in a favorable effect of JPY 24.6 billion.
Please turn to page five. I'd like to explain about our global sales volume for the first quarter of 2024. Compared to the previous fiscal year, retail sales volume in regions other than North America is generally on an increasing trend. The significant decrease in sales in China and other areas was due to the impact of structural reforms implemented in FY 2023. I would like to explain the situation by region on page six.
First is ASEAN and Oceania in Thailand. Demand has been sluggish due to tightening of credit standards. We were able to recover our market share while the sales volume decreased year-on-year. Looking ahead, we will work to expand our market share, focus on the new Xpander HEV, which is performing well, the new Triton, which offers full lineup, and Mirage and Attrage, which enjoy solid sales. Indonesia is also experiencing a severe situation where total demand has fallen year-on-year for 13 consecutive months since June 2023.
Our sales volume decreased year-on-year, but our market share improved. Going forward, we will further expand our market share by strengthening the new XForce model launched in FY 2023, introducing the new Triton and introducing special edition models. In the Philippines, automotive demand has been firm, and we are expanding both our market share and sales volume.
This was due to favorable sales of Mirage G4 and Xpander, as well as the impact of the introduction of the new Triton. In this first quarter, our sales share in the Philippines reached 18.8%. In the second quarter onward, we will work to achieve further growth through the new XForce launched in July. In Vietnam, although the economy seems to have hit the bottom, automotive demand remains sluggish.
In such a situation, Xpander continues to rank number one in sales among all models, and the new XForce also broke into the top five in sales immediately after its launch, expanding both sales volume and market share year-on-year. While the market environment is unstable due to reluctance to buy, with the expectation that the Vietnamese government will have registration taxes, we will continue to expand sales volume and market share by leveraging the main models of Xpander and new XForce, as well as the new Triton, which is scheduled to be introduced soon.
The Oceania region in Australia, which makes up the majority of the region, total demand grew by 5.3% year-on-year, and we increased our sales volume by more than 30% year-on-year, partly due to the vehicle supply being restored. Our market share expanded as well. Sales of the new Triton began in earnest in June, and we will continue to strengthen sales. Please go to page seven.
Next is Latin America and the Middle East and Africa. In Latin America, automotive demand in Brazil is on the recovery track, partly due to a reduction in policy interest rates, although it still does not reach the pre-COVID level. In other major countries, the pace of recovery in automotive demand is moderate, partly due to headwinds such as the tightening of automobile loan screening. In this environment, we were able to increase sales volume year-by-year by leveraging the introduction of the new L200 and Triton and the new Outlander Sport or XForce.
We will continue to focus on maintaining solid sales momentum and further increasing sales. In the Middle East, despite the impact of the Israeli-Gaza conflict in some countries, overall demand for automobiles has generally remained almost at the same level as the previous year. We generally recorded sales on par with the previous year, as strong sales of Xpander and Outlander offset the declining sales of L200, whose inventory has been reduced for the launch of the new model.
Meanwhile, in Africa, automotive demand was sluggish due to the high interest rates and inflation, and we were also affected by these factors, resulting in a decline in sales volume. We plan to boost sales volume by launching new models. Please turn to page eight. Here's Japan, North America, and Europe. In the domestic market, automotive demand decreased year-over-year, partly due to the impact of the suspension of shipments of some OEMs, but we maintained the strong sales momentum of the Delica Mini and increased sales volume.
Going forward, in addition to the introduction of Outlander PHEV and Delica Mini Special Edition models, we will work to increase the sales of the new Triton, which has been well received since its launch. In North America, in the U.S. and Canada, amid a deteriorating retail sales environment due to the impact of high interest rates and inflation, we continued to focus on improving the quality of sales rather than trying to reduce prices. In addition, a cyberattack on a dealer IT system in late June had a significant impact on the operations of about one-third of our dealers, and our sales volume decreased year-over-year.
Going forward, we will strengthen our incentive program for target customers and work to increase sales, focused on continued sales momentum for Outlander and Outlander PHEV. Meanwhile, sales in Mexico, which is included in the North America region, remained strong, and both sales volume and market share increased year-over-year. Looking ahead, we aim to increase sales volume and market share by further expanding the sales of the new L200 Triton, which is robust in sales, and by launching the new XForce.
In Europe, competition remains challenging, but our sales volume increased year-over-year, driven by the contributions of ASX and Colt, both of which are OEM models from Renault. Going forward, we will expand the sales of the new ASX and prepare for the launch of the Outlander PHEV scheduled at the end of the current fiscal year. Please turn to page 10. Although there is some leeway in the foreign exchange rate assumptions, we have decided to maintain the forecast announced at the beginning of fiscal year in light of the uncertain macro environment and the expected further intensification of competition.
Although the business environment remained challenging, we as a company will make concerted efforts to achieve our forecasts. Next, I will introduce the business highlights for the Q1 FY 2024. Please turn to page 12. The new Triton and new XForce, which were launched in FY 2023, have begun full-scale deployment since this fiscal year and were launched in ASEAN, Latin America, and the Middle East and other regions in the first quarter FY 2024. These products, which embody the unique characteristics of Mitsubishi Motors-ness , have been well received by many customers in their respective regions and countries.
From the second quarter onwards, as shown in the slide, we plan to expand into Middle East and Africa. By steadily developing products, we will further penetrate and strengthen our brand. Please turn to page 13. We announced that Outlander PHEV will make its public debut on October 1, 2024, in Madrid. The new generation of Outlander PHEV starts production at the end of 2024 and will join our revitalized lineup following the new ASX and the all-new Colt.
In Europe, the Outlander is a pioneer in PHEV plus SUV and has been winning numerous awards and has been accepted by many customers with sales of 0.2 million units in Europe since its introduction back in 2013. We aim to take our brand to a new level and further strengthen the brand by launching the new generation Outlander PHEV in the European market.
In the first quarter of FY 2024, the environment surrounding us was becoming increasingly severe, as seen in the prolonged weakening of sales in the ASEAN market, particularly in Thailand, and the normalization of the competitive environment due to the resolution of the shortage of parts supplied caused by semiconductors. On the other hand, the new Triton and the new XForce have been rolled out from ASEAN to global markets. Going forward, we will start full-scale sales of these products while expanding them to other regions in line with our plans.
Although the global wave of high inflation seems to have finally peaked out, the future outlook will remain extremely difficult due to heightened geopolitical risks and a series of important elections, including the U.S. presidential election, which is scheduled for November.
Although the situation continues to be difficult to manage, we will steadily implement the rollout of new models and focus on accelerating our initiatives set at the beginning of the fiscal year, such as strengthening regional businesses, taking on challenges in new business areas, and new business formats through various partnerships. That's all from my side. Thank you.