Toyota Cuts September Production by 40% Due to COVID-19 and Semiconductor Supply Shortage

Toyota Stock Plummets 4.7% Intraday

[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Suhwan] Japanese automaker Toyota Motor Corporation is reportedly planning to reduce its global automobile production by about 40% in September compared to its original plan due to the global semiconductor supply shortage and the spread of the Delta variant.

On the 19th, Nihon Keizai Shimbun reported that Toyota is expected to produce only about 500,000 units, down from the previously planned production volume of 900,000 units in September.

This figure is even lower than the production volume during the same period last year. According to Nihon Keizai Shimbun, Toyota's global vehicle production in September last year reached 840,000 units.

At that time, Toyota increased production while overcoming the impact of the COVID-19 pandemic, but after one year, it is now reducing production again due to the effects of the Delta variant.

The reason behind Toyota's decision to cut production is analyzed to be the ongoing shortage of automotive semiconductors and the rapid spread of the Delta variant, especially in Southeast Asia, where various parts manufacturing plants are located.

In particular, lockdown measures due to the resurgence of COVID-19 in some countries such as Vietnam have been prolonged, causing many automobile parts manufacturing plants in those countries to halt operations. As a result, Toyota faced disruptions in parts supply, ultimately leading to the production cut.

Additionally, Toyota plans to suspend some production lines at its own manufacturing plants located in Japan, including those in Toyota City.

Following the report by Nihon Keizai Shimbun on this day, Toyota's stock price plunged by up to 4.7% during intraday trading on the Japanese stock market.

This content was produced with the assistance of AI translation services.