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Toyota misses out on production target for the third consecutive month

Toyota misses out on production target for the third consecutive month
Toyota misses out on production target for the third consecutive month

Toyota Motor Corp.'s global production output has slipped 9.7% behind its target during the first five months of 2022, raising doubts over the Japanese automaker's ability to stick to its existing aim for the remaining year.

The largest carmaker in the world by sales reportedly mentioned that it manufactured only 634,940 vehicles in May, which is about 5.3% under what it had hoped to achieve, which was about 700,000, short of meeting its monthly objective for three months running.

The automotive corporation had intended to produce a record 9.7 million vehicles in the fiscal year ending in March 2023, but it has now hinted that this number may be lower.

Due to a sizable chip stockpile, Toyota initially did well during the worldwide semiconductor crunch. However, this year, production has been slashed repeatedly due to a lack of essential chips and equipment as well as supply disruptions brought on by COVID-19 containment efforts in China.

Toyota intends to compensate for lost output through the latter part of the fiscal year and thus is expected to maintain its present yearly objective, assuming no new unfavorable circumstances materialize.

The manufacturer has twice lowered its manufacturing target for June, with Toyota expected to produce 750,000 automobiles, 12% down from the previous prediction of 850,000 vehicles. The company has already referred to April through June as a planned break in production to ease the pressure on its suppliers.

In Japan, Toyota’s production fell by 28.5% domestically in May, but it increased by 4.6% internationally. Surprisingly, due to a less chip shortage, Europe was among the few regions where output grew considerably amidst the worldwide unrest.

Additionally, Thailand and Indonesia, two nations that were severely impacted by COVID-19 outbreaks last year, saw an increase in production as well.

Source Credits:

https://www.channelnewsasia.com/business/toyota-misses-may-production-target-third-monthly-shortfall-2776491

 

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Vinisha Joshi

Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for cuereport.com and a few other distinguished news platforms, pertaining to business and finance.