Toyota trimmed its production outlook to 9 million units from 9.3 million units for the fiscal year through March, blaming the spread of the coronavirus in Southeast Asia.
The world’s no. 1 automaker is adjusting production operations for September and reviewing plans for October, but said in a statement that it is sticking to its forecast for operating profit of 2.5 trillion yen (R321 billion) for the fiscal year.
“Key reasons for the production adjustment include a decline in operations at several local suppliers due to the prolonged spread of Covid-19 in Southeast Asia and the impact of tighter semiconductor supplies,” Toyota said in the statement.
“Although the outlook for November and beyond is unclear, current demand remains very strong.”
Toyota said it expects roughly 70,000 units to be affected by the production delays during September, while 330,000 units are predicted to be affected in October.
Beyond this, the company said that it assumes production plans will continue as usual from November onwards. It also said it is working on shifting production activities to other regions.
The production of the following model ranges will be affected during the coming months at the company’s factories:
- Takaoka Plant – Toyota Corolla / Corolla Touring
- Tsutsumi Plant – Toyota Corolla Sport / Toyota Camry / Lexus ES
- Tahara Plant – Toyota Land Cruiser Prado / Toyota 4Runner / Lexus GX
- Miyata Plant – Lexus NX / CT / UX / UX300e / ES / RX
- Iwate Plant – Toyota Yaris / Yaris Cross / Aqua
- Miyagi Ohira Plant – Toyota Yaris Cross / Sienta / Corolla Axio / Corolla Fielder / JPN Taxi
- Fujimatsu Plant – Toyota Land Cruiser 70
- Yoshiwara Plant – Toyota Land Cruiser 70
- Hamura Plant – Toyota Land Cruiser Prado / FJ Cruiser
“Although our plants and suppliers are taking thorough quarantine and vaccination measures in response to the pandemic in Southeast Asia, the spread of Covid-19 infections remains unpredictable, making it difficult to maintain operations due to lockdowns at various locations,” said Toyota.
Reporting with Bloomberg