Toyota cuts October production target by 6.3% amid chip shortage

Sep. 30, 2022 5:42 AM ETToyota Motor Corporation (TM)By: Preeti Singh, SA News Editor6 Comments

Toyota Motors

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  • Toyota Motor (NYSE:TM) has slashed its October production target by 6.3% due to a semiconductor shortage, deepening concerns that the shortfall will continue to impede production in the second half of the financial year to March 31.
  • Keeping its 9.7M vehicle production target for the current financial year unchanged, the Japanese automaker said on Friday that it expects around 750K vehicles to be produced in Oct.
  • It also announced suspension of production at some production lines in Japan for up to ten days.
  • The announcement comes around a week after the automaker released its production target of ~800K vehicles globally for the next month.
  • On Thursday, Toyota (TM) announced that its global vehicle output grew 44.3% Y/Y in August 2022, marking the first increase since March. However, it added that the outlook remains uncertain amid the global chip shortage and continuing COVID-19 outbreaks.
  • Last week, Toyota rival Honda Motor (HMC) said it would reduce car output by up to 40% at two Japanese plants in early October due to ongoing supply chain and logistical problems.

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