Chip shortage in the spotlight for Japanese automakers

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Japan’s biggest automakers are expected to release what analysts are expecting lower profits this week.

Investors looking for trading clues will be listening to any assessment of the future impact of a global chip shortage that has forced a production disruption.

Automakers around the world have had to adjust or suspend production in recent months, as factors such as increased demand for electronic devices and U.S. sanctions against Chinese tech companies have resulted in a shortage of semi. conductors.

Power outages in Texas where a number of chipmakers have factories and a fire at Renesas Electronics’ chip factory in Japan have exacerbated the supply shortage.

Analysts said what is expected to be an otherwise strong (post-pandemic) recovery year may be held back somewhat by the tight supply situation.

Tighter supplies but robust auto demand are pushing up vehicle prices, especially in the United States, providing a buffer to automaker profits, analysts said.

For the fiscal year ended March 31, Toyota – the world’s largest automaker in terms of vehicle sales last year – is expected to post a 12.5% ​​drop in operating profit to 2.1 trillion yen ( $ 19.30 billion), Refinitiv SmartEstimate showed based on 24 analyst estimates.

Profit is expected to rebound to 2.6 trillion yen in the current fiscal year that began April 1, Refinitiv SmartEstimate showed.

While many global competitors have been forced to cut production due to chip shortages, Toyota has so far been largely unscathed, possibly due to its chip storage policy, analysts say.

Honda is likely to report an 11% drop in profits to 560 billion yen, while Nissan is expected to post a loss of 142 billion yen, from 40.5 billion yen a year earlier, Refinitiv SmartEstimate showed.

Honda’s profit is expected to reach 791 billion yen in the current fiscal year, and Nissan is expected to reach a profit of 141 billion yen, according to Refinitiv SmartEstimate.

Nissan is expected to release results tomorrow, followed by Toyota on Wednesday and Honda on Friday.


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