TOKYO (Reuters) – Toyota Motor Co. said on Thursday it plans to produce about 800,000 vehicles worldwide in October, about 100,000 less than the average monthly production plan, due to a shortage of semiconductors.
The cut could be seen as a worrying sign that chip shortages will continue to hamper production at the world’s largest automaker through sales in the second half of the fiscal year ending in March.
This is seen as a critical period for the group to recover from production shortfalls caused by shortages in a key vehicle component and broader disruptions in the supply chain.
However, Toyota has not revised its global auto production target for the current fiscal year, sticking to its forecast of 9.7 million units.
The Japanese automaker said last month that it aims to produce about 900,000 vehicles a month on average from September to November.
On Thursday, it said it now expects to produce about 850,000 vehicles a month on average from October to December.
According to the October production plan, Toyota will suspend production for up to 12 days for 10 lines at seven local plants.
Toyota produced 627,452 vehicles worldwide last October when the COVID-19 pandemic disrupted supply cuts in Southeast Asia.
Japanese automakers have previously suggested that the chip shortage is waning, but it is unclear when it will be resolved.
Although the chip supply crunch is expected to ease from the second quarter of the fiscal year onwards, the rise in electric vehicles and cars equipped with advanced driver assistance systems will require more semiconductors per vehicle, Morgan Stanley (NYSE: 🙂 said MUFG Securities Co. in a report on Wednesday.
Toyota’s rival Honda Motor Co. said on Thursday it will cut auto production by up to 40 percent at two Japanese plants in early October due to ongoing supply chain and logistical issues including chip shortages.