COVID-19 surge in Southeast Asia dents chip supplies, slowing rebound
NAGOYA -- Toyota Motor's annual vehicle output will fall below the latest target of 9 million for the fiscal year ending March, as the chip shortage in Southeast Asia takes a further toll, the automaker announced on Tuesday.
Output is expected to surpass the 8.18 million units Toyota produced last year. But a series of output cuts since autumn has made it difficult for the carmaker to reach the latest target, set in September, when it trimmed its annual global production target for the current fiscal year from 9.3 million to 9 million cars.
The Japanese carmaker also said it will produce more than 700,000 vehicles worldwide in February. That is up 10% from a year earlier but 150,000 cars, or 20%, short of the previous goal.
The fresh announcement confirmed an earlier Nikkei report.
Some chipmakers in Malaysia appear to have been affected by a surge in COVID-19 cases. With Toyota's European auto parts suppliers facing chip shortages, the automaker has been forced to cut production.
Toyota will suspend vehicle production at its Tahara plant, in Aichi Prefecture, as well as at some group company factories in Fukuoka and Miyagi prefectures.
Toyota told its suppliers in late December that it planned to produce around 900,000 cars globally in February. Toyota turned out 660,000 vehicles in February 2021, 620,000 in 2020, and 720,000 in 2019.
Compared with production levels in the past, global output of 700,000 units for February 2022 is relatively high. Toyota had planned to make as many as 900,000 cars to bring its overall production back to normal.
The Japanese carmaker reduced its worldwide production by 30 to 40% in September and October versus its original plan due to the chip shortage. The company produced 820,000 cars in November as planned. However, chip production has recovered more slowly than anticipated because COVID has hit Southeast Asia harder than expected.
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