The semiconductor shortage is weighing in on Japanese carmaker Toyota, which has revised its production target despite overwhelming demand for its vehicles.
Toyota in its production report stated that its manufacturing plants had made repeated adjustments to production plans due to a parts shortage resulting from the spread of COVID-19. Initially, the global production plan in February 2022 was expected to be around 700,000 units with strong demand leaving the automotive giant aiming for an all-time high in production. However, due to the impact of the continuing demand for semiconductors across all industries, Toyota has adjusted its production plan by around 150,000 units globally.
As a result of the revision, the full-year production forecast for the year (March) is expected to be lower than the previous forecast of 9 million units.
The carmaker will be cautious in its forecast approach and will continue to examine the situation and consult with all companies involved in considering the use of substitutes where possible in anticipation of a continuing chip shortage.
Among the production plant affected by suspension is the Yaris plant, CHR, Corolla and Lexus LS, all the plants were located in Japan.