Toyota cut its global production target three times in the last financial year, falling from 9.3 million units in May 2021 to 8.5 million units in February.
Toyota Motor Corp. announced that its annual vehicle output may fall below its initial target due to ongoing global shortages of semiconductors. This ongoing chip crisis has hampered Toyota’s efforts to boost sales. The world’s largest carmaker remains uncertain if it can keep its annual production target at a record 9.7 million vehicles after it missed interim targets for the first four months of the year. Financing begins in April.
According to a Reuters report, Toyota’s production spiked in August, but October and November’s output is expected to be between 7,50,000 and 8,00,000 units, respectively, below the planned levels. The average monthly production plan is 9,00,000 units for September. to November that the Japanese carmaker expected at the end of last month.
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Toyota did not announce the expected production rate reduction, however, output in the first 5 months of the current financial year fell sharply by 6.7% compared to the company’s original plan. A Toyota spokesman said a revised target would be revealed as production prospects become clearer.
With inflation and interest rates rising along with the growing risk of a recession in major markets with semiconductor shortages, hopes for positive demand have been limited. Toyota also shared that it will suspend 11 production lines at 8 domestic factories next month from 2 to 9 days, which will affect the output of many vehicles including Corolla, RAV4 and Toyota. Yaris.
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Toyota cut its global production target three times in the past financial year, falling from 9.3 million units in May 2021 to 8.5 million units in February. The automaker also ended production of about 8.6 million vehicles in the last financial year to March 31.
Date of first publication: October 22, 2022, 13:26 PM IST
