The semiconductor chip shortage is still affecting vehicle manufacturers globally, including the world’s largest automaker by sales, Toyota. On Thursday, the Japanese company said it plans to produce only 800,000 vehicles worldwide in October, a figure that is 100,000 less than its average monthly production plan, due to semiconductor shortages.
The news could be a sign that the semiconductor chip shortage will continue to be an issue for manufacturers in the second half of the financial year, which ends in March 2023. Many companies hope to bounce back from production shortfalls caused by the shortage and supply chain issues over the past year.
Toyota has not adjusted its global vehicle production target for the current financial year and still plans to produce 9.7 million units, a record for the company. The automaker said it expects to make around 850,000 vehicles per month on average through the end of the year.
Toyota plans to suspend production for up to 12 days for ten lines at seven of its domestic factories. Honda is also facing reduced outputs as a result of the chip shortage. The rival company announced on Thursday that it would reduce car production output by 40% at two of its Japanese plants in October due to ongoing supply chain and logistical issues.
Morgan Stanley MUFG Securities said in a report this week that the rise in electrified vehicles and advanced driver-assistance systems will require more semiconductors per vehicle. This could stymie hopes that the semiconductor shortage would ease in the coming months.
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