AutoBeta(AutoBeta.net)10/17 Report--

Toyota officials said on Oct.15 that it would cut production in November due to a shortage of car chips, reducing production by between 100,000 and 150,000 vehicles compared with previous production plans. It expects global production in November to be between 850,000 and 900,000 vehicles. It said its actual output had been below planned levels since August. In September and October 2021, Toyota's global production was between 500,000 and 600,000 vehicles. In order to make up for the previous production gap, the November production plan was initially set at 1 million vehicles. However, as there is still a shortage of parts, it is impossible to make up for the previous production gap. Affected by this, Toyota will reduce production by about 50,000 vehicles in Japan in November and 50,000 to 100,000 vehicles overseas.

For its full-year production in fiscal year 2022, Toyota said it would continue to maintain its earlier full-year production target of 9 million vehicles as the Southeast Asian epidemic improved. Efforts to strengthen the supply chain will continue in response to the continuing shortage of some parts. The chronic shortage of chips is expected to continue and alternatives will be considered where possible, and Toyota plans to resume normal production after December, but Toyota sources predict there is still some uncertainty. Notably, Toyota cut its global vehicle production by 15% in November from its previous plan, after cutting its planned production by 40% in September due to the outbreak in Southeast Asia.

It is understood that in September Japan Toyota Motor Corporation in its official website released news that due to the Southeast Asian epidemic caused by insufficient supply of parts, October Japan's 14 factories in total 27 production lines will stop operation. As early as August this year, Toyota Motor announced that global production in September will be reduced from the planned 900,000 vehicles to 540,000 vehicles due to insufficient supply of parts caused by the new crown epidemic in Southeast Asia. In the Chinese market, Toyota car sales have also been affected accordingly. According to relevant data released by the Association, FAW Toyota sold 52,000 vehicles in September and GAC Toyota sold 49,000 vehicles, with market shares of only 3.3% and 3.2%.

At present, with the aggravation of the core shortage problem and the new crown epidemic, the global automobile industry has brought a lot of pressure. The global semiconductor shortage will reduce the world's auto industry by as many as 7.1 million units this year, and the disruption in chip supply caused by the new crown epidemic will continue the industry's woes into next year, according to Esin Huamai, a world-renowned market analysis firm. The global chip shortage will not ease until the second half of 2022. Some analysts said Toyota's November production cuts were not surprising given environmental factors, and the company showed strong recovery ambitions, but capacity could not recover as quickly as originally planned, and parts shortages remained the main risk.

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