World's No.1 Car Market Leader Toyota Likely to Fall Below 9 Million Units Production for 5 Consecutive Years

On the 18th, Tokyo Stock Exchange's market capitalization surpassed 40 trillion yen for the first time during intraday trading

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Toyota Motor Corporation, the global leader in automobile sales, is expected to have a global production volume below 9 million units for the fifth consecutive year.

Toyota announced on the 18th that its global production forecast for February is approximately 700,000 units.

Due to a shortage of semiconductor parts, it is expected to produce about 150,000 units less than originally planned.

In addition to the semiconductor parts shortage, the spread of COVID-19 in Southeast Asia, where parts factories are located, led to large-scale production cuts in September and October last year.

As a result, Toyota forecasts that its global production volume for the fiscal year 2021 (April 2021 to March 2022) will fall below 9 million units.

Toyota's global production volume has been below 9 million units for five consecutive years since 2017, after surpassing 9 million units in 2016.

In 2020, when the COVID-19 pandemic began, global production sharply dropped to around 8.18 million units.

However, in 2021, as demand in the global automobile market recovered, production increased despite difficulties in procuring semiconductor parts.

Meanwhile, on the Tokyo Stock Exchange, Toyota's market capitalization surpassed 40 trillion yen (approximately 415 trillion won) for the first time during trading on the 18th.

Expectations for strong performance due to growth potential in the electric vehicle (EV) sector and the weak yen have driven Toyota's stock price up more than 20% since the end of November last year.

In December last year, Toyota announced that it would raise its global EV sales target for 2030 from 2 million units, including fuel cell vehicles (FCVs), to 3.5 million units.

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