Toyota planned production uptick encouraging, says GlobalData

Following the news that Toyota is planning to make 800,000 vehicles globally in December, partially recovering recent months’ lost production due to the parts supply crisis;

David Leggett, Automotive Analyst at GlobalData, a leading data and analytics company, offers his view;

“After months of forced cutbacks to production due to parts supply disruption, December’s Toyota output plan suggests the worst may be over – at least for those automotive companies who are effectively managing their supply chains.

“It is encouraging, of course. Toyota has also held its previous guidance on the sales forecast for the current fiscal year at 9 million units and its plants in Japan will be operating at normal capacity utilization next month for the first time since May.

“It’s undoubtedly good news but also underlines the severity of the supply difficulties faced in the car industry in 2021. Toyota is seen as a company that is relatively strong on managing its supply chain, but even it has seen serious disruption this year. For Toyota there has also been the added and severe impact of the pandemic on its huge parts supply base in southeast Asia.

“Nevertheless, for the automotive sector as a whole the unwinding of the semiconductors supply shortage will last well into 2022 because of the complexities and constraints associated with adding upstream production capacity in the required semiconductors and microprocessors.”

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