Toyota to Produce Fewer Vehicles in October Due to Semiconductor Shortages: All Details

Japanese automakers have previously suggested the chip shortage is easing, but it is unclear when it will be resolved.

Toyota to Produce Fewer Vehicles in October Due to Semiconductor Shortages: All Details

Semiconductor shortage is hurting the production of vehicles worldwide

Highlights
  • Toyota Motor plans to produce about 800,000 vehicles worldwide in October
  • It has not adjusted global vehicle production target for current fiscal
  • Toyota will suspend production for up to 12 days at 7 domestic factories

Toyota Motor said on Thursday it plans to produce about 800,000 vehicles worldwide in October, about 100,000 short of its average monthly production plan, due to semiconductor shortages.

The reduction could be seen as a worrisome sign that the chip shortage will continue to stymie production at the world's largest automaker by sales in the second half of the financial year to end March.

That is seen as a crucial period for the group to bounce back from a production shortfall caused by a shortage in the key vehicle component and wider supply chain disruptions.

Still, Toyota has not adjusted its global vehicle production target for the current financial year, sticking to its forecast for a record 9.7 million units.

The Japanese automaker said last month it aimed to produce about 900,000 vehicles per month on average from September through November.

It now expects to produce about 850,000 vehicles per month on average from October to December, it said on Thursday.

According to its October production plan, Toyota will suspend production for up to 12 days for 10 lines at seven domestic factories.

Japanese automakers have previously suggested the chip shortage is easing, but it is unclear when it will be resolved.

Despite expectations that the chip supply crunch will ease from the second quarter of the financial year onwards, a rise in electrified vehicles and cars equipped with advanced driver-assistance systems will require more semiconductors per vehicle, Morgan Stanley MUFG Securities Co said in a report on Wednesday.

Toyota's rival Honda Motor said on Thursday it would reduce car output by up to 40 percent at two Japanese plants in early October due to ongoing supply chain and logistical issues, including the chip shortage.


Buying an affordable 5G smartphone today usually means you will end up paying a "5G tax". What does that mean for those looking to get access to 5G networks as soon as they launch? Find out on this week's episode. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

 

Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

Ola Electric to Sell Ola S1, S1 Pro Electric Scooters in Nepal; Plans Debut in International Markets
Softbank CEO to Meet With Samsung to Discuss 'Strategic Alliance' With Arm: All Details
Read in: हिंदी
Share on Facebook Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2023. All rights reserved.