Posted on 20 Aug 2021
Japanese auto manufacturer Toyota is planning further car output cuts at its domestic assembly lines next month, in the wake of a continued shortage of auto components triggered by increasing Covid-19 cases in southeast Asia.
Toyota said today it is planning additional car production adjustments at its domestic operations in September following a temporary suspension of some assembly lines earlier this month. The planned output adjustments will affect 27 of Toyota's 28 production lines at 15 domestic plants, including those operated by subsidiaries Daihatsu and Hino.
The affected production lines will be shut for a period of 2-20 days, with two lines at its Motomachi plant planned to be closed throughout September. Some assembly lines are also scheduled to close for some days for the rest of August.
Toyota has withstood a global shortage of automotive semiconductor chips better than its rivals but has been more affected by the increased Covid-19 infections in southeast Asia, which has curbed supplies of car components. The company earlier this month said it maintained its domestic production target for passenger cars at 3.2mn units for the April 2021-March 2022 fiscal year despite the supply shortage of auto components.
Toyota's group domestic car output, including those produced by Daihatsu and Hino, increased by 20pc from a year earlier to 2.1mn units during January-June.
A firm recovery in Japanese car output has been the driving force in lifting the country's steel and metals demand over recent months. Domestic steel mills earlier projected steel demand from the car industry will further recover later this year with the pandemic being brought under control.
Source:Argus
