Due to a scarcity of semiconductors, Toyota Motor warned on Thursday that it would only be able to build roughly 800,000 vehicles globally in October, 100,000 less than it had anticipated.
With sales in the second half of the fiscal year finishing in March, the decrease might be interpreted as a troubling warning that chip shortages would continue to slow down production at the largest carmaker in the world.
This is viewed as a crucial time for the company to recover from production deficits brought on by broad supply chain disruptions and shortages of essential car parts.
Nevertheless, Toyota stuck to its prediction of a record 9.7 million vehicles for the current fiscal year and did not change it.
Between September and November, the Japanese carmaker stated that it intends to build an average of 900,000 automobiles every month.
From October through December, it is now anticipated to produce about 850,000 automobiles each month, the company stated on Thursday.
Toyota will temporarily halt production on 10 lines at seven domestic facilities for a maximum of 12 days in accordance with its production schedule for October.
When the chip scarcity would end has already been predicted by Japanese manufacturers, but it is currently unknown.
The demand for semiconductors per vehicle will increase despite expectations that the chip supply shortage would alleviate starting in the second quarter of the current fiscal year, according to a research from Morgan Stanley MUFG Securities. Wednesday.
Honda Motor, a Toyota rival, announced on Thursday that it would reduce vehicle production at two Japanese facilities by up to 40% starting in early October as a result of continued logistical and supply chain issues, including chip shortages.
