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(Reuters) – Forvia’s shares fell as much as 8% 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 supplier raised its estimate for global auto production to around 86 million light vehicles this year, from 82 million previously.

It forecast 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 expected an operating margin of 5.2% to 6.2%, versus 5-6% previously.

A trader said the guidance upgrade was “not very impressive” in light of the higher production estimate.

“Positioning is long, not good enough this morning; especially after the recent strong share price run,” the trader said. The stock, down 4% as of 0812 GMT, has gained around 67% this year.

Global automotive production grew more than 10% in the first half of the year, on sustained demand and gradual improvement in semiconductors supply, CEO Patrick Koller said in a statement.

China’s decision to curb exports of two metals widely used in semiconductors and electric vehicles has raised concerns of new supply disruptions just as the automotive industry recovers from a global chip shortage.

“The sector uses semiconductors which are not always of the latest generation and therefore less sensitive to new restrictions,” finance chief Olivier Durand said on a call with journalists.

Forvia’s half-year operating profit jumped nearly 70% to 675 million euros, but was 2% below analysts’ consensus estimates, according to a research note by J.P.Morgan.

The company, born from Faurecia’s takeover of Hella, said persistent inflation on energy and labour costs continued to weigh on margins, while the impact from raw material costs should be smaller than last year.

($1 = 0.9007 euros)

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