Toyota cuts global production outlook by half a million cars

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Toyota cut its production outlook for the fiscal year by 500,000 cars this week, citing ongoing supply chain issues.

The company lowered its Japanese production forecast for fiscal year 2023 from 9.7 million units to 9.2 million units, after sticking to its original target for months.

Toyota hinted at an impending revision to its production plan in late October, as it announced another monthly cut.

The company also says it expects to build about 750,000 units (250,000 in Japan and 500,000 elsewhere) in December, down from 850,000 previously forecast.

It will suspend production for a few days at three of its Japanese factories (Takaoka, Tahara and Miyata).

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“At Toyota, we would like to apologize again for the repeated adjustments to our production plan due to parts shortages resulting from the spread of COVID-19, and for causing considerable inconvenience to our customers, who were waiting for the delivery of vehicles, suppliers and other involved parties,” TMC said.

“As for the full-year production forecast for fiscal year 2023, we have taken into account future risks such as shortage of semiconductors and announced 9.2 million units.

“We will continue to closely review parts supply and work with related parties to consider all possible measures to ensure that we can deliver as many vehicles to our customers as soon as possible.”

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Camera iconProvided Credit: CarExpert

Background

COVID and semiconductor shortages in its factories and wider supply chain have recently wrecked Toyota. It has issued more than 20 production bulletins and subsequent modifications this year as it scrambles to navigate tough waters.

Toyota Australia dealerships hit by ongoing chronic stock shortages are asking some customers to prepare for years-long wait times on base models including LandCruiser, RAV4 and Camry.

Toyota Australia acknowledges the long waits, but says there really isn’t a one-size-fits-all timeframe as each dealership has different pipelines.

“The demand for new vehicles is reaching unprecedented levels. In Australia, to meet the high demand, Toyota Australia has worked closely with our global production teams to secure as many vehicles as possible for our market,” he said recently.

“Wait times vary depending on each customer’s model, variant and specification requirements. The RAV4 Hybrid, Camry Hybrid, LandCruiser 70 and LandCruiser 300 are particularly in demand and currently have longer waiting times.

“Due to the evolving nature of this situation, Toyota dealerships are in the best position to continue to provide updates to customers on delivery times for individual orders.”

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