Forvia's shares fell as much as 8 percent in early trading on Thursday, after a slight hike to the car parts maker's annual targets failed to impress investors.
The world's seventh-largest automotive supply raised its forecast for worldwide auto production to around 86 million light vehicles this year, from 82 million previously.
It forecasts 2023 sales of 26.5 - 27.5 billion euros, $29.4 - 30.5 billion, up from an earlier range of 25.2 - 26.2 billion. It also forecast an operating margin of 5.2 percent to 6.2 percent, compared to 5 - 6 percent previously.
The guidance upgrade is not very impressive in light of the higher production estimate, said a trader.
The trader said positioning is long, not good enough this morning, especially after the recent strong share price run. The Nasdaq shares, down 4 per cent as of 0812 GMT, have gained around 67 per cent this year.
Global automotive production rose more than 10 per cent in the first half of the year, driven by sustained demand and gradual improvement in semiconductors supply, CEO Patrick Koller said in a statement.
China's decision to restrict the imports of two metals used in electronic vehicles and semiconductors has raised worries about new supply disruptions as the automotive industry recovers from a worldwide chip shortage.
The sector uses semiconductors which are not always of the latest generation and therefore less sensitive to new restrictions, said finance chief Olivier Durand on a call with journalists.
Forvia's half-year operating profit rose almost 70 per cent to 675 million Euros, but was 2 per cent below analysts' consensus estimates, according to a research note by J.P. Morgan.
Faurecia, a company based in Hella, said that persistent inflation on energy and labor costs remained weighing on margins, and that the impact from raw material costs should be smaller than last year.