Post by : Bianca
Haleem
Japan-based Panasonic Holdings has lowered its full-year operating profit projection by 13.5%, pointing to soft performance in its energy division — the unit that supplies EV batteries to Tesla and other automakers.
The company now expects an operating profit of 320 billion yen ($2.12 billion) for the fiscal year ending March 2026, down from a prior forecast of 370 billion yen. The revision follows reduced demand for electric-vehicle batteries and heightened competition across the clean mobility sector.
Panasonic’s energy business, which provides cells for leading carmakers, has seen margin compression driven by slower sales momentum and rising input costs. With global EV adoption cooling somewhat, major battery suppliers are encountering greater pressure on profitability.
Despite the downgrade, Panasonic reiterated plans to push forward with battery technology development and to grow production capacity internationally, with North America singled out as a key area for next-generation battery expansion.
The revised outlook highlights the strategic challenges facing traditional electronics firms as they adjust to a rapidly shifting automotive and energy market where scale, cost control and technological advances are critical.
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