On Thursday, Toyota Motor said it plans to produce about 800,000 vehicles worldwide in October, about 100,000 vehicles short of its average monthly production plan due to semiconductor shortages.
The cuts could be seen as a worrying sign that chip shortages will continue to affect the world’s largest carmaker’s production by sales in the second half of the fiscal year to the end. March.
That is seen as a critical period for the group to recover from production shortfalls caused by critical vehicle component shortages and broader supply chain disruptions.
Still, Toyota did not adjust its global vehicle production target for the current financial year, sticking to its forecast of a record 9.7 million units.
Last month, the Japanese automaker said it aims to produce an average of about 900,000 vehicles per month between September and November.
It now expects to produce an average of about 850,000 vehicles per month between October and December, it said on Thursday.
According to the October production plan, Toyota will suspend production for up to 12 days for 10 lines at 7 domestic factories.
Japanese automakers have previously suggested that the chip shortage is easing, but it is unclear when it will be resolved.
While it is expected that the chip supply crisis will ease from the second quarter of the fiscal year onwards, an increase in electric vehicles and cars equipped with advanced driver assistance systems will require ask for more semiconductors per vehicle, Morgan Stanley MUFG Securities Co said in a report on Wednesday.
Toyota’s rival Honda Motor On Thursday it said it would reduce auto production by as much as 40% at two Japanese plants in early October due to ongoing logistics and supply chain issues, including a chip shortage.