Honda's profit fell 33% in the first quarter of the fiscal year, compared to the same period in 2021, due to the shortage of 'chips', the blockade in China due to the pandemic, and rising raw material prices.

The Japanese company's profit fell to 149.2 billion yen (about 1 billion euros) in the April-June quarter, down from 222.5 billion yen (1.6 billion euros) a year earlier.

Quarterly sales, meanwhile, fell 7%, to 3.8 trillion yen (27 billion).

The recent blockade in Shanghai is among the causes of the shortage in 'chip' supply, according to Honda, which declined to give further details.