Toyota Motor Corp. warned it expects to miss its fiscal-year target of assembling 9.7 million vehicles, as a persistent shortage of semiconductors and other parts weighs on the carmaker and its global rivals.
The world’s biggest auto manufacturer said it will produce 800,000 units in November and suspend operations at several of its plants in Japan due to the impact of supply constraints, Toyota said in a statement October 21. Of the total output, 550,000 vehicles will be exported, and the rest will be for the domestic market.
The auto industry faces a string of headwinds, including rising costs on materials and logistics, global supply chain breakdowns and parts shortages stemming from the spread of COVID-19. Toyota will discuss details on its earnings November 1 when it unveils half-year results.
“It remains difficult to look ahead due to the impact of semiconductor parts and other factors,” Toyota said in the statement. “We will continue to closely examine the supply of parts and work with related parties to consider all possible measures.”
Toyota shares closed down 0.8% in Tokyo October 21 before the announcement of the vehicle production. The stock has declined 5.6% this year.
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