Toyota Motor said on Thursday it expects to produce around 800,000 automobiles worldwide in October, putting the company around 100,000 short of its monthly average production plan due to semiconductor shortages.
The reduction could be seen as a frightening sign that the chip shortage will continue to stymie production at the world''s largest automaker by sales in the second half of the financial year to end March.
This is a crucial moment for the organization to overcome a production problem dwindling due to a shortage of the key vehicle component and greater supply chain problems.
Toyota hasn''t adjusted its worldwide vehicle production target for the present fiscal year, despite exceeding its target of a new high of 9.7 million units.
Last month, the Japanese auto manufacturer said it planned to produce roughly 900,000 automobiles per month on average from September through November.
On Thursday, the company plans to produce around 850,000 automobiles per month on average from October to December.
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Toyota will put production at seven domestic factories on a 12-day period, according to its October production plan.
It''s previously believed the chip shortage is improving, but it''s unclear when it will be resolved.
Despite concerns that the chip supply shortage will ease from the second quarter of the financial year onwards, a rise in electrified vehicles and automobiles equipped with advanced driver-assistance systems will require additional semiconductors per vehicle, according to Morgan Stanley MUFG Securities Co.
Toyota''s competitor Honda Motors said on Thursday that it would reduce vehicle output at two Japanese facilities by up to 40% in early October owing to ongoing supply chain and logistical issues, including the chip shortage.