Huge drop in car production

Toyota’s global output plummeted by 39.1 per cent year on year in September to 512,765 vehicles.

The reduction has been attributed to supply-chain disruptions amid the semi-conductor shortage and a resurgence of coronavirus cases.

The company’s output decreased for the second consecutive month with a 29.9 per cent fall in overseas output to 376,015 units and a 55.3 per cent drop to 136,750 units in domestic production.

However, Toyota anticipates a record high-level output of between 850,000 and 900,000 units in November with Covid-19 restrictions expected to ease in south-east Asia.

The company says its global sales, which were affected by the production cut, fell by 16.4 per cent to 700,122 vehicles in September for its first decrease in 13 months.

It has cut its output outlook for fiscal year 2021 through to March to nine million vehicles, down by reducing 300,000. During 2020/21, its worldwide output was about 8.18 million units.

“Although coronavirus infections and parts-supply situations remain uncertain, we will make efforts to minimise the impact as much as possible,” says a spokesman for Toyota.

The company has been known for its robust supply chains, but factory shutdowns in south-east Asian countries have caused difficulty in securing enough parts.

In addition, the global chip crunch has hit carmakers with the pandemic boosting demand for semi-conductors and key components used in everything from game consoles to motor vehicles.