TOKYO: Japan’s Honda Motor Co on Wednesday forecast a 68% decrease in annual operating profit to a 10-year low with global demand for cars expected to slide because of the coronavirus pandemic.
The country’s No. 3 automaker expects profit to sink to 200 billion yen (US$1.89bil) in the year to end-March 2021, its weakest since the 2010/11 year and undershooting analyst estimates. Honda is bracing for a 6% decrease in annual vehicle sales after a 40% plunge in the June quarter, which resulted in a 113.7 billion yen operating loss.
Global automakers are taking a big hit from the coronavirus outbreak, which shuttered vehicle factories this year and has kept customers out of car dealerships. The maker of the CR-V SUV crossover and the Fit compact hatchback expects to sell 4.5 million vehicles this year, versus 4.79 million last year.