Toyota cuts global car production targets by 15%

Auto manufacturing giant affected by shortage of parts, power cuts, and Covid — but expects to hit full-year production targets

Toyota has cut its global car production target for November by around 15% from an earlier plan as a shortage of parts continues to weigh on the world’s number one car maker.

The Japanese company had planned to make 1m cars next month but now expects to make only around 850,000 to 900,000 units.

“Since we are still experiencing a shortage of some parts and will be unable to make up for previous production shortfalls, we have adjusted our initial production plans for November,” Toyota said.

Annual production likely to stay on target

“This adjustment will affect approximately 50,000 units in Japan, and between 50,000 units and 100,000 units overseas.”

Toyota’s full-year production target of 9m vehicles for the 12 months to the end of next March will be maintained, however, “due to the easing of restrictions on Covid-19 in south-east Asia”.

Smaller-than-expected production cuts in September and October also helped, it said.

Power shortages also impacted output

“The worst period is over,” said Kazunari Kumakura, Toyota's chief procurement manager. “We’re seeing lower risks,” he said, but added that as chip supply normalises, supply and demand will remain tight.

Toyota, long lauded as one of the best in the business due to its just-in-time supply chain, has had a rough trot over the past few weeks. Last month, it said that power shortages in China were impacting output.

• Bloomberg