Toyota Motor Corporation plans to produce a total of 10.4 million units globally combining its Toyota and Lexus brands for the fiscal year 2022 ending in March 2023, according to a report published in Nikkei Asia.
This will be the first time that Toyota will top 10 million units, boosted by increased demand in the wake of successful vaccination campaigns as well as sufficient production of semiconductors.
Related: Toyota’s Global Sales Reaches Record High
Toyota has notified its main suppliers of its production plans. Suppliers will form their investment strategies leading up to fiscal 2022 based on this information. The Japanese auto giant expects China and the U.S. to bolster the automotive market. Toyota’s decision to increase production will be felt across the automobile supply chain and will likely be a major driving force for a manufacturing rebound in the post-COVID world.
According to the report, Toyota’s production plans for this fiscal year ending March 2022 eyes a total of 9.5 million units. Plans for the following year envision manufacturing 7.1 million units overseas and 3.3 million units in Japan. Overseas production will see a roughly 10% jump, while output in Japan will be increased by 3%.
Related: Toyota is the Most Searched Car Brand Globally
In 2020, Toyota overtook Volkswagen in sales, regaining its title as the world’s top selling automaker for the first time in 5 years. Toyota, which faced a serious supply shortage after the March 11, 2011, earthquake and tsunami in Japan, has since stockpiled parts throughout the supply chain, including chips. This contingency plan appears to have lessened the impact of the recent chip shortage compared with overseas rivals such as Volkswagen and General Motors.
Currently global shortages of chips weigh heavily on automakers’ production. According to a senior Toyota executive the company expects chip procurement to “be normalized next year and there will be no impact” on the output. An executive of a parts manufacturer also said “production is scheduled to grow from around fall this year.”
Full Story: Nikkei Asia
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