On Friday, Honda Motor’s vehicles saw a second cut in sales, the reason behind this being said to be the lack of semiconductors in the world. Due to the continuous shortage of semiconductors, the company has to cut its vehicle production. Apart from this, due to the continuous increase in the prices of steel and other essential materials, the profit margin of the company is also coming down. Like all other automakers, Honda’s vehicle production plan is also seeing huge losses due to lack of chips. Global production has seen a decline of 30 percent in the last one year.
Seji Qureshi, executive chairman of Honda company, said in the press conference that ‘We used to believe that the supply shortage would be limited after a while, but in the last few times we have seen that the supply shortage has increased tremendously and it is expected to last for a long time. is visible.
Seji Qureshi further said that the company is also struggling with the continuous increase in the prices of steel and other materials. A report by Refinitiv showed that Honda’s latest forecast for an operating profit of 660 billion yen (about $5.80 billion) as of March 31, 2021 is 15 percent lower than that predicted in August, and 764.5 billion by 20 experts. The yen’s average is lower than forecast.
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Japan’s second-largest automaker on Friday slashed its vehicle sales plan from 4.85 million to 4.2 million this fiscal year. Let me tell you in the last one year it was 45 lakhs. Toyota Motor also lowered its year-long sales target on Thursday, blaming Semiconductor, saying it would lead to a reduction in its year-long production plans.
Honda’s executive chairman Seiji Qureshi has expressed hope that the chip shortage may subside by March next year. They don’t want any reason to affect their plans to accelerate the transition to electronic vehicles and other vehicles, he says.
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