Toyota’s global production in the first five months of 2022 is on average 9.7% below its own target, raising questions about whether it can maintain its current target for the year. Reuters reported that Toyota said it produced 634,940 vehicles in May, down 5.3 percent from a year earlier and missing its target of around 700,000 vehicles.
It was the third straight month that Toyota missed its monthly target. Toyota is sticking to its goal of a record 9.7 million vehicles in the fiscal year ending in March 2023, but also raised the possibility that production plans “could be lower.”
Toyota has performed well during a period of global semiconductor shortages due to a large number of storage chips, but this year, due to shortages of key chips and components, as well as supply disruptions caused by the epidemic, Toyota has cut production several times.
In June, Toyota lowered its production target twice. The latest forecast is for 750,000 vehicles, which is about 12% lower than the original estimate of 850,000 vehicles.
Seiji Sugiura, a senior analyst at Tokai Tokyo Research Institute, said that if no other negative factors emerge, Toyota will likely stick to its current annual target to make up for lost output in the second half of the fiscal year.
“For example, it’s not impossible to produce 900,000 cars a month in the second half of this year, so making up production may still be considered,” said Seiji Sugiura.