Toyota’s October car output will fall due to chip shortages | Jobs Reply

TOKYO, Sept 22 (Reuters) – Toyota Motor Corp ( 7203.T ) said on Thursday it planned to produce about 800,000 vehicles worldwide in October, about 100,000 short of its average monthly production plan because of a semiconductor shortage.

The decline could be seen as a worrisome sign that the chip shortage will hamper production at the world’s largest automaker by sales in the second half of the fiscal year that ends in March.

It is seen as a critical period for the group to bounce back from production shortfalls caused by key vehicle component shortages and widespread supply chain disruptions.

Still, Toyota has not adjusted its global vehicle production target for the current fiscal year, retaining its forecast of a record 9.7 million units.

The Japanese automaker said last month that it aimed to produce about 900,000 cars per month on average from September to November.

It now expects to produce an average of about 850,000 cars per month from October to December, it said on Thursday.

According to the October production plan, Toyota will suspend production for up to 12 days for 10 lines at seven domestic factories.

Last October, Toyota produced 627,452 vehicles globally when the COVID-19 pandemic disrupted parts supplies in Southeast Asia.

Japanese automakers have previously suggested that chip shortages are easing, but it’s unclear when that will be resolved. Read more

Despite expectations that the chip supply crunch will ease from the second quarter of the fiscal year, growth in electrified vehicles and vehicles equipped with advanced driver-assistance systems will require more semiconductors per vehicle, Morgan Stanley MUFG Securities Co said in a report on Wednesday.

Toyota rival Honda Motor Co ( 7267.T ) said on Thursday it would cut vehicle output at two Japanese plants by up to 40% in early October due to ongoing supply chain and logistics problems, including chip shortages. Read more

Reporting by Satoshi Sugiyama; Editing by Mark Potter, Jason Neely and Jan Harvey

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