Japanese Carmakers Expect Annual Production to Slump by 1.3 Million Units

The shortage of semiconductor chips, raw materials, and the global supply chain crisis are worsening each day, pushing automakers to scale back production by millions of units.

Japanese carmakers are reportedly expecting their annual production to drop by 1.3 million units in the fiscal year 2021. They project that the chip shortage will exacerbate operational affairs for all automakers in Asia.

Additionally, for the eight dominant automakers in Japan, this reduction reportedly amounts to five percent of their total annual production in FY2020, which was around 23.35 million units.

These car companies have announced that they will reduce their production in the coming days. Toyota recently stated that it will decrease its production by 100,000 to 150,000 units. It also announced earlier this year that its production may go down by 40 percent on a global scale.

Similarly, Honda declared a number of production cuts in the third quarter of the 2021 calendar year and forecast lower global sales as well this year. Suzuki also foresees a drop in its annual production within Japan, estimated to be around 350,000 units in FY 2021.

Nissan, Mitsubishi, Mazda, Subaru, and Daihatsu, are also considering reducing their annual vehicle production. These automakers are regarded as the mainstays of several car markets around the world, which is why the news of their production cuts does not bode well for car buyers in any part of the world.