Japan's Panasonic sees global car output improving this business year

A logo of Panasonic Corp is pictured at the Combined Exhibition of Advanced Technologies at the Makuhari Messe in Chiba, Japan, October 2, 2017. REUTERS/Toru Hanai/File Photo

June 1 (Reuters) – Panasonic Corp (6752.T) said on Wednesday it expected global car production to recover this fiscal year, but that the two-year long chip shortage will continue.

The Japanese conglomerate, which makes batteries for Tesla Inc (TSLA.O), said last month it expected no growth in profits this business year, due to component shortages caused by COVID-19 lockdowns in China and rising material costs following Russia’s invasion of Ukraine.

Reporting by Satoshi Sugiyama in Tokyo; Editing by Himani Sarkar

Our Standards: The Thomson Reuters Trust Principles.