Honda And Nissan Sales Fell by a Quarter of a Million Cars in The Current Fiscal Year Due to a Lack of Chips

Honda and Nissan, Japan’s second and third largest automakers, will sell 250,000 fewer cars in the current fiscal year to the two companies as a global shortage of semiconductor chips hurts production.

The carmakers announced this as they were unveiling brighter forecasts for the fiscal year ending in March 2021 as auto markets, led by China, recovered from the recession caused by the Coronavirus. Honda and Nissan also reported better-than-expected results for the October-December quarter.

But Honda cut its sales target by 100,000 cars, or 2.2%, on Tuesday to 4.5 million cars, while Nissan cut its target by 150,000, or 3.6%, to 4.015 million cars, after the chip shortage forced both companies to curb production.