Toyota, Nissan, and Honda are set to announce their third quarter results this week, with expectations that they will be influenced by a recovery in demand in China and the U.S., despite the ongoing global chip shortage impacting profits.
According to the Japanese Cabinet Office, the services sector sentiment index has declined for the third consecutive month in January, reaching its lowest level since May following the re-imposition of a state of emergency in Tokyo and some other regions. The decline in car purchases began due to increased demand for electronics as more people stayed at home due to the COVID-19 pandemic, forcing automakers to cut production, only for sales to rapidly recover beyond expectations.
In a survey conducted by Refinitiv, analysts expect Toyota to achieve profits of $14.22 billion for the fiscal year ending March 31, compared to profits of $12.3 billion reported in November. Last month, Toyota announced it would reduce production of its Tundra truck at its factory in San Antonio, Texas.
