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Toyota Motor Corporation is reportedly considering reducing its global production target to about 100,000 units from 850,000 vehicles announced earlier in June due to the semiconductor shortage. However, it remains confident that it can achieve its target of producing 9.7 million vehicles by March 2023.
The company also announced that it will suspend its domestic factory line operations given the ongoing supply scarcity. Toyota will postpone its domestic production operations for up to five days till June 3.
This will affect 10 factories, which means that Toyota will be able to produce only about 850,000 vehicles a month from June to August. Besides the shortage of components, other factors such as the Coronavirus outbreaks are also making it difficult to predict the future.
After more than a month of being temporarily shut down, Toyota's plant in China was able to resume its operations earlier this month. It was joined by other carmakers such as Volkswagen AG in returning to production following the COVID-19 restrictions.
Despite the temporary suspension in production, Toyota's production has not been affected by the situation. The company was able to achieve its sales target of around 9.51 million vehicles during the fiscal year that ended in March.
It was also the world's top carmaker last year. Since the company is still confident that it can achieve its target of producing 9.7 million vehicles by March 2023, the reduction in June's production doesn't seem to have much of an effect on its operations.
In addition to maintaining its production, Toyota is also planning to establish a manufacturing facility for electric vehicle components in India. This will allow the company to cater to the needs of both the domestic and international markets.
Toyota is expected to start producing electric vehicle components such as electric powertrain or e-drive parts in the upcoming years.
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