Chip shortage continues, Toyota expected to cut full-year production target

According to Reuters, on October 21, local time, Toyota Motor said that its annual vehicle production may be lower than its original target due to the ongoing global shortage of semiconductors.

In the first four months of the new fiscal year that started in April this year, Toyota failed to achieve its mid-term target, and whether the company can stick to its record annual production target of 9.7 million vehicles is also attracting attention.

Data show that Toyota's production rebounded in August, but its output in October and November is expected to be about 750,000 and 800,000 vehicles respectively, lower than the average monthly production plan of 900,000 vehicles from September to November estimated at the end of last month.

Toyota did not say how much it would cut its annual production target, but production in the first five months of the fiscal year was 6.7% lower than originally planned. A Toyota spokesman said the revised target would be disclosed once the production outlook becomes clearer.

Japanese automakers had hoped that chip shortages would ease, allowing them to increase production in the second half of the fiscal year to make up for limited output in the first half, but Friday's announcement dampened those hopes.

In addition, Toyota said on Friday that it will suspend 11 production lines at 8 domestic factories next month for 2 to 9 days, which will affect the production of various models such as Corolla, RAV4 and Yaris.