Japan's Panasonic sees global car output improving this business year

PANASONIC Holdings, which makes batteries for Tesla and other automakers, said on Wednesday (Jun 1) it expected global car production to recover this fiscal year, but predicted that the 2-year long chip shortage would continue.

"We will be running our business as we consider risks of fluctuations on vehicle production," said Masashi Nagayasu, CEO of the Japanese conglomerate's automotive business, which makes in-car infotainment systems and other auto components.

Speaking on the first day of Panasonic's annual investor event, Nagayasu said Panasonic was not thinking about making cars.

Panasonic, which gets roughly 14 per cent of its total revenue from the automotive unit, expects sales in the business to rise 19 per cent in the fiscal year ending March 2023. It expects operating profit to rise nearly 17 per cent.

The company said last month it expected no growth in profits this business year, due to component shortages caused by Covid-19 lockdowns in China and higher commodity costs following Russia's invasion of Ukraine. REUTERS