Toyota has confirmed its plans to produce 9 million vehicles this fiscal year ending March 31. The company had previously expected to produce 9.3 million vehicles during this period. Interestingly, while Toyota confirms a significant cut in production, it has not revised its $ 22.7 billion profit forecast for the fiscal year.
Automakers around the world are feeling production cuts amid the pandemic and chip shortages. Toyota added that slowdowns in production at its parts plants in Vietnam and Malaysia exacerbate problems already posed by chip shortages.
Toyota executives have confirmed that a combination of coronavirus and a shortage of semiconductors is the cause of production problems. For a while, Toyota was able to resist the decline in production targets because it had a stock of components.
The demand for chips in many industries continues to grow, with many people still working from home, and sales of smartphones, tablets and computers remain strong. Virtually every industry that uses microcircuits is feeling the impact of scarcity.