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YOKOHAMA, Japan, June 25 (Reuters) - Nissan Motor Co (nasdaq: NSANY - news - people ) chief executive Carlos Ghosn said that industrywide sales in the United States could fall well below 15 million vehicles this year and that he expected steel firms to launch another round of price hike talks.

Ghosn also told a news conference after the company’s annual shareholders’ meeting that the carmaker would likely raise prices in Japan to offset a surge in the price of steel and other raw materials.

Nissan and other car makers are grappling with a weak U.S. market, where many analysts have also predicted sales would fall below 15 million units this year as high gasoline prices and a sluggish economy cut into demand.

“If we take the trend of the market in May and June it looks like we are going to be much below 15 million. Now I’m not sure if this is going to continue for the rest of year,” Ghosn said. “We are preparing ourselves for the worst.”

Ghosn said he expected Nissan’s U.S. market share to rise, however, thanks to its full line-up of models including fuel-efficient cars.

Nissan and other Japanese automakers are expecting profits to fall sharply this year, largely because they have to pay more for steel as suppliers such as Nippon Steel (other-otc: NISTF.PK - news - people ) look to pass on the rising costs of freight, coal and iron ore.

Ghosn, who is also chief executive at top Nissan shareholder Renault (other-otc: RNSDY.PK - news - people ) said he expected steelmakers to initiate another round of price hike talks.

“And if it’s not going to happen in 2008, it’s going to come in 2009, and it’s going to be messy,” he said.

Shares of Nissan gained 0.2 percent to end the day at 899 yen, while the benchmark Nikkei average fell 0.1 percent.

Ghosn also said he expected another round of steel price talks. (Reporting by Nobuhiro Kubo and Nathan Layne; Editing by Hugh Lawson)