Toyota Reduces Global Production Target by Half a Million Units

Toyota Motor Corporation has reduced its global vehicle production target by half a million units due to the shortage of semiconductor microchips. It had initially planned to produce nine million vehicles globally but has decided to reduce the target to 8.5 million units.

Despite several experts claiming that the chip shortage has ended, automakers continue to be impacted by it. Other automotive giants such as Honda, Nissan, Volkswagen Audi Group, Daimler, BMW, the Stellantis Group, the Hyundai Motor Group, General Motors, the Ford Motor Company, Jaguar Land Rover Automotive, SAIC Motor, Geely, etc. are also operating at a decreased capacity.

The Japanese automotive giant had lowered its global production goal in September 2021 due to recurrent waves of COVID-19 in Southeast Asia that had disrupted the supply chain, logistics, and other business activities.

“We’re in a production recovery phase, but we haven’t been able to meet as high targets as we were previously planning,” Kazunari Kumakura, the head of Toyota’s purchasing group, had said in January. He added that resuming full-scale production will be tremendously challenging under the current circumstances.

Pakistani Market

Pakistan is also going through a chip shortage crisis, causing many automakers to delay deliveries. Regardless, the Toyota Indus Motor Company (IMC) had a large increase in sales in 2021.

Its CEO, Ali Asghar Jamali, stated that the chip issue is not a major concern for the company and it is planning to scale up its production instead to meet the growing demand for its vehicles.