Market Chatter: Honda Set to Drop to Fourth Place Among Japanese Carmakers as Chip Shortage Cuts Output

MT Newswires Live11-25

Honda Motor (TYO:7267) may fall to fourth place from second among Japanese automakers in global sales for the October-March period, with volume expected to drop 14% to 1.66 million vehicles due to a semiconductor shortage that stalled North American production, Nikkei reported Tuesday.

Suzuki Motor (TYO:7269) forecasts an 8% rise to 1.8 million vehicles, which may put it ahead of Honda for the first time. Honda cut its North America outlook by 110,000 vehicles after shipments from chip supplier Nexperia stopped, forcing plant adjustments in the U.S., Canada and Mexico. Output is now returning, according to the report.

The disruption is seen reducing Honda's full-year operating profit by 150 billion yen, with earnings forecast to fall 55% to 550 billion yen. Nissan (TYO:7201) also pared output and expects a 25 billion yen hit, while Suzuki's strong performance in India is lifting its global ranking, the report said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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