Honda has cut is annual profit forecast after anti-Japan protests in China hurt its sales in the country, its second-largest market.
The protests, triggered by a row over disputed islands, saw Chinese consumers shun Japanese products. Honda’s sales in China dipped by 40% in September.
The carmaker has forecast a net profit of 375bn yen ($4.7bn; £2.9bn) for the financial year ending 31 March 2013.
That is down from its earlier projection of 470bn yen.
Honda’s shares fell 4.7% to 2,399 yen on the the Tokyo Stock Exchange. The firm said it expected income at its China unit to decline further in wake of the dispute between the two countries.
Japanese firms usually release their earnings after the close of markets, but Honda posted its latest report on its website three hours ahead of schedule by mistake.
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