Toyota Motor reported a reduction in production in October by more than a quarter compared to the same month in 2020. The reason for this result is the shortage of both electronic and other components, which continues to cause damage to manufacturers, analysts explain. Due to problems with the supply of parts, Toyota's global sales fell by 20 percent last month, with the Japanese finishing in the red for the second month in a row.
In October 627,452 cars rolled off the assembly lines of Toyota plants around the world вЂ” 217,655 less than in the same month of 2020. The company managed to sell 677,564 cars, according to the company's report. After its publication on Monday, November 29, Toyota shares fell by 3.4 percent.
However, Toyota management is confident that the situation with the reduction of production will be corrected in the near future. Thus, the company intends to produce from 850 thousand to 900 thousand cars by the end of November, as well as to increase the pace of assembly in the second half of the current fiscal year.
In addition, according to the new forecast, Toyota's operating profit in 2021 should be 2.8 trillion yen вЂ” 300 billion yen more than expected in August.
Toyota is far from the only Japanese manufacturer facing a drop in sales due to interruptions in the supply of parts. Nissan's production pace fell by 22 percent year-on-year in October, and sales by 16 percent. Honda reports a decrease in the number of cars produced for the fifth month in a row: in October, the company collected 28 percent fewer cars than in the second autumn month of 2020.
According to the calculations of the heads of the automotive industry, the shortage of microelectronics will not be eliminated until 2023. It is expected that the automotive industry will need at least another 15-20 months to overcome the shortage of components, although next year its impact on production should be less noticeable.