Toyota Set to Cut Production Target Over Chips Shortage

Toyota says it has made a technological breakthrough to enable it to produce smaller EV batteries that can charge quickly and allow a driving range of up to 745 miles (Reuters file photo).

Japan’s Toyota Motor Corp will likely lower its production target for vehicles in this financial year due to the scarcity of microchips, the carmaker said on Friday.

Toyota’s existing forecast is for 9.7 million vehicles to be produced by March 2023, with a revised figure to be released once it has examined the impact on production.

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Toyota has slashed its global production target for the last financial year three times, from 9.3 million in May 2021 to 8.5 million this February, ultimately producing about 8.6 million vehicles.

The automaker said it planned to turn out about 800,000 vehicles worldwide next month, or about 100,000 short of the average monthly production plan for September to November released on September 22.

The firm will also suspend 11 production lines at eight domestic factories next month, affecting the output of a wide variety of vehicles including the Corolla, RAV4 and Yaris, it added.

Reuters, with additional editing from Alfie Habershon

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Alfie Habershon

Alfie is a Reporter at Asia Financial. He previously lived in Mumbai reporting on India's economy and healthcare for data journalism initiative IndiaSpend, as well as having worked for London based Tortoise Media.