Toyota is reportedly preparing to cut its auto production by as much as 15% in November. The news comes as the global semiconductor industry continues to suffer from supply shortages caused in large part by the COVID-19 pandemic.
The 15% figure makes up about 150,000 vehicles worldwide. It isn't the first time Toyota is cutting down its production this year. The Japanese automaker, which sells the beloved Vios and Fortuner, has cut 40% from its initial production goals from September to October. Despite the cutbacks, Toyota says it is on track to maintain its production plans for the current fiscal year. The company expects to produce about nine million vehicles in that period.
As for when things can go back to some form of normalcy, it's harder to say. Toyota is aiming for a return to normal production numbers by December, but this depends on a variety of factors.
Toyota's plans could be spoiled if the global chip shortage continues into 2022. For now, the issue of limited semiconductor supply is affecting car manufacturers the world over.
The chip shortage is said to be caused by several factors, including supply chain difficulties and a massive jump in home electronics sales during the pandemic lockdowns. If the chip drought becomes an extended phenomenon, it could spell trouble for Toyota and the rest of the world's automakers.
On the bright side, industry experts have been predicting the end of the chip shortage to be sometime during the second half of 2022. If this is the case, then Toyota could be nearing the light at the end of the tunnel.
While this is an unfortunate development for Toyota, consumers are not expected to feel the effects of the company's production cuts. Toyota is still targeting to produce over nine million vehicles this year, and that should be enough to meet the growing demand for the automaker's products.