A global slowdown in EV sales was highlighted by Panasonic Holdings (6752.T), which supplies Tesla (TSLA.O), saying on Monday that it has reduced vehicle battery output in Japan in the September quarter and lowered the division’s annual profit prediction by 15%.

The company’s less optimistic assessment of its battery business comes in the wake of similar cautions issued by a number of automakers and suppliers due to slower growth in major nations like China and Europe.

For the energy segment that produces batteries for Tesla (TSLA.O) and other automobiles, Panasonic cut its full-year operating profit expectation from 135 billion yen to 115 billion yen ($769 million).

According to presentation materials the business released on its website, it modified car battery production in Japan in the three months leading up to the end of September in order to achieve a “suitable inventory level, in response to rapidly-reduced demand.”

On Monday at 0900 GMT, the group chief financial officer of Panasonic is scheduled to conduct a briefing regarding the company’s second-quarter profits.

According to the presentation materials, Panasonic said that the U.S. Inflation Reduction Act had caused consumer demand shifts, which had a negative impact on the battery unit’s manufacturing in Japan due to the sluggish uptake of high-end EVs in North America.

Panasonic reported stable output at its North American facilities and solid sales of cars qualified for tax rebates.

The South Korean battery company LG Energy Solution (373220.KS) issued a warning last week about how the prognosis for EV sales will be affected by global economic concerns, which would slow revenue growth in 2024.

This month, Elon Musk, the CEO of Tesla, expressed caution about the company’s plans to increase its EV production capacity. He expressed concern that, even with price reductions, potential buyers would not be able to purchase Tesla’s vehicles due to increased financing rates.

In an effort to reduce expenses, General Motors (GM.N) is likewise delaying the release of a number of EV models and reducing its expenditure on EV products.

Yesterday, sources close to the situation told ET that VinFast Auto, a Vietnamese manufacturer of electric vehicles (EVs), has already visited two Tamil Nadu areas as it looks at possible locations for its proposed manufacturing facility.