Car production will improve this fiscal year, says battery maker Panasonic
Car production is expected to improve this fiscal year, according to battery maker Panasonic.
The Osaka-based giant – who makes batteries for marquees such as Tesla – said its total revenue derived from the automotive market will increase from 14 to 19 per cent, with operating profit growing by 16.6m yen (£101.9m).
“We will be running our business as we consider risks of fluctuations on vehicle production,” said Panasonic’s boss Masashi Nagayasu.
Even though the global automotive output will increase, the chief executive said, semiconductor shortages are here to stay due to the lingering effects of Covid lockdowns in China and the disruption caused by Russian invasion of Ukraine.
In the UK, global shortages and macroeconomic winds continue to bite as car production in April fell by 11.3 per cent to 60,554 new vehicles, recent data from the Society of Motor Manufacturers and Traders (SMMT) showed.
“Global chip shortages and supply chain disruption are exacerbated by spiralling energy costs, additional trading costs and slowing global markets,” SMMT’s boss Mike Hawes said on 26 May.
Electric vehicle production, on the other hand, remained steady against a dire financial backdrop.
“The foundations of the sector are strong and the transition to zero and ultra-low emission vehicles continues apace but we need more policies and measures that support manufacturing and encourage investment into the UK at this most challenging of times,” Hawes added.