TOKYO (Reuters) -Japan’s Panasonic Holdings on Monday cut the operating profit forecast for its energy unit that makes automotive batteries by 15%, as it warned of slowing demand for high-end electric vehicles in North America.
The company’s less positive outlook for its battery segment comes after a growing number of automakers and suppliers gave their own warnings about a hit to EV sales due to the slowdown in major economies, including China and Europe.
Panasonic lowered its full-year operating profit forecast for the energy unit that makes batteries for Tesla and other automakers to 115 billion yen ($769 million) from 135 billion yen.
Panasonic’s group chief financial officer is set to hold a briefing on the second-quarter earnings from 0900 GMT on Monday.
The battery unit’s production in Japan suffered from slowing uptake for high-end EVs in North America, Panasonic said in a presentation posted on its website, as the U.S. Inflation Reduction Act spurred demand changes among consumers.
Panasonic’s production at its North American operations remained steady, and it saw stable sales of vehicles eligible for tax credits, it said in the materials.
($1 = 149.5400 yen)
(Reporting by Daniel Leussink; Editing by Kim Coghill and Miral Fahmy)
