Panasonic expects global car production to improve this fiscal year

Panasonic Holdings Corp (6752) said on Wednesday that it expected car production worldwide to recover during the current fiscal year.

Still, the company, which makes batteries for Tesla, expects the two-year long chip crunch to continue.

“We will be running our business as we consider risks of fluctuations on vehicle production,” Masashi Nagayasu, the Chief Executive Officer of Panasonic Holdings Corp’s automotive business said during the first day of the Japanese conglomerate’s annual investor event.

Panasonic’s automotive division generates about 14% of the group’s total revenue. The company now forecasts a 19% surge in sales in that business during the fiscal year ending March 2023 and a 17% increase in operating profit.

The Japanese group expects no profit growth during the current business year because of component shortages and higher commodity prices.

The shares of Panasonic Corp closed higher for the seventh time in the past ten trading sessions in Tokyo on Wednesday. The stock went up 0.76% (JPY 9.0) to JPY 1,193.0, after touching an intraday low at JPY 1,168.0. The latter has been a price level not seen since May 26th (JPY 1,141.0).

The shares of Japan’s Panasonic Corp have retreated 5.69% so far in 2022, following a 6.26% gain in 2021.

The benchmark stock index Nikkei 225 has lost 4.63% so far this year.