The Japanese car manufacturer, currently the second-largest in the world behind the Volkswagen Group, expects to produce at least 9.2 million vehicles for the fiscal year ending March 2023, down from its previous prediction of 9.7 million units.
In the previous fiscal year, Toyota's production was impacted by the pandemic, resulting in 8.6 million units. For the upcoming year, the company stated that it has "set a baseline production volume with a downward risk fluctuation range of approximately 10%," indicating that the 10.6 million-unit goal may be subject to change based on supply-related challenges.
The company highlighted that the situation remains difficult to predict as chip suppliers continue to experience production difficulties in meeting global demand. This month, Toyota plans to manufacture 700,000 vehicles, with 200,000 to be produced in Japan and the remaining 500,000 in other countries, including the US.
In recent months, Toyota has had to adjust its production output on a monthly basis due to supply chain issues. However, the company has been transparent about these changes, which has been well-received by stockholders. The company has faced criticism for not fully embracing electric vehicles, with CEO Akio Toyoda expressing opposition to an exclusive reliance on pure battery-electric powertrains. Despite this, Toyota is expected to release several new EV models in the near future, starting with the bZ4X.
Source: Carbuzz