Toyota Might Produce 11 Million Cars in Fiscal 2022 Should the Chip Supply be Stable

As per a source familiar with the situation, Toyota Motor Corp expects to generate a record 11 million automobiles in fiscal 2022. The person stated that meeting the output target would be contingent on a consistent supply of chips. This production plan was previously published in the Nikkei newspaper. According to a spokeswoman, Toyota isn’t the source of the manufacturing report.

The manufacturing of cars all across the globe has been affected by a global chip scarcity. Top automakers such as Toyota, Maruti Suzuki in India, and Hyundai have felt the pressure. This is also shown in their quarterly reports. These automakers now claim that when the global chipset situation loosens, vehicle manufacturing will recover in the initial half of this year. Other automakers, such as Tata Motors and Volkswagen, have been impacted by the worldwide semiconductor deficit.

Chips play a significant role in developing automobiles in the current era. The delay in obtaining them has resulted in a longer wait time, postponed deliveries, and the lack of a few functions. Above everything, the lengthy waits have led to a rise in prices.

As long as semiconductor supplies are constant, Toyota Motor Corporation of Japan could generate a record 11 million automobiles in the fiscal year 2022.

“Auto chip sales and demand are projected to normalize in the third quarter, whenever chip companies’ capacity is projected to accelerate,” said Seo Gang Hyun, Executive Vice President.

According to Seo, the deficit will persist in the initial quarter because of the spread of the Omicron variety, the protracted COVID-19 outbreak in Southeast Asia, and the related chip procurement difficulties.

About Toyota Company

Toyota Motor Corporation is an international automaker based in Toyota City of Aichi in Japan. Kiichiro Toyoda started the company, which was formed on August 28, 1937. Toyota is among the globe’s major automakers, generating over 10 million automobiles every year.

The company began as a division of Toyota Industries, a machine manufacturer established by Kiichiro’s father named Sakichi Toyoda. Both enterprises are now components of the Toyota Group, one of the world’s biggest conglomerates.