The Toyota Motor Corporation has announced that manufacturing at its Russian plant will cease on Friday, and car imports into the country have also been halted indefinitely because of supply chain issues.
The decision is subsequent to that of several other Japanese firms that have announced similar measures, citing parts procurement challenges and logistical issues.
Many Western corporations have shunned Russia after its invasion of Ukraine, with some announcing that they will withdraw their investments but many Japanese companies have chosen not to react to it.
Toyota is Russia’s most popular Japanese brand, with a plant in St. Petersburg that employs 2,000 workers and produces around 80,000 vehicles.
It stated,
Like everyone around the world, Toyota is watching the ongoing developments in Ukraine with great concern for the safety of people of Ukraine and hopes for a safe return to peace as soon as possible.
Other Japanese Automakers
Honda Motor Company said that it had suspended shipments of vehicles and motorbikes to Russia due to complications in exporting vehicles and making payments, despite sales totaling only 1,406 units in the fiscal year 2020.
Mazda Motor Corporation, which sold 30,000 automobiles in Russia last year, announced that component exports to its joint venture factory in Vladivostok will be suspended shortly.
Mitsubishi Motor Corporation stated that it may stop manufacturing and sales in Russia due to probable supply chain delays as an outcome of Russian restrictions.
However, Nissan, which sold 53,000 automobiles in 2021, stated it will keep operating in Russia while keeping an eye on the existing situation.
Japan’s Ministry of Finance also stated that automobiles and car parts accounted for more than half of Japan’s exports to Russia in 2020.
Via Reuters
