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Japan's carmakers hit by China's people power

Japan's carmakers hit by China's people power
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Honda has issued a profits warning cutting its full-year figures by one-fifth following a popular backlash against Japanese goods in China.

It followed territorial disputes between the two countries in the China sea.

The news makes it likely Toyota and Nissan will do the same when their quarterly results come out next week.

“We changed our estimates mainly due to the impact from the situation in China, the decrease of unit sales following the changes of business environment in European, South American and Indian markets,” said Honda’s Senior Managing Officer Fumihiko Ike.

Sales of Hondas in China, its second-biggest market, fell by more than 40% last month.

The company says the disruption of normal trading could last until February.