Post by : Badri Ariffin

Japan’s Panasonic Holdings has lowered its full-year operating profit forecast by 13.5%, pointing to subdued performance at its energy division — a major supplier of electric vehicle (EV) batteries to Tesla and other carmakers.

The group now anticipates an operating profit of 320 billion yen ($2.12 billion) for the fiscal year ending March 2026, down from its previous target of 370 billion yen. Management cited cooling EV battery demand and intensifying rivalry across the clean mobility market as key factors behind the revision.

Panasonic’s energy business, instrumental in powering EVs for prominent manufacturers, has seen margins tighten amid slower sales expansion and rising input costs. As global EV adoption growth eases, leading battery makers are experiencing margin pressure, and Panasonic is being affected as well.

Despite the downgrade, the company reaffirmed plans to push forward with battery innovation and to broaden production capacity overseas, with a particular emphasis on North America where demand for next-generation cells remains promising.

The revised outlook underscores the hurdles traditional electronics firms face while transitioning within a fast-changing automotive and energy landscape — where technological advancement, scale and speed are increasingly decisive.

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