As a result of the global chip shortage, Toyota’s profitability dropped by 21% in the last three months of 2021.
The corporation reported a third-quarter operating profit of 784.4 billion yen (£5 billion; $6.8 billion).
The world’s best-selling automaker has lowered its yearly manufacturing target from 8.5 million to 500,000 cars.
It comes at a time when manufacturers all around the world are having difficulty finding adequate microprocessors for their goods.
“We apologize for any difficulty given to our customers as a result of the sequence of manufacturing volume cutbacks that have occurred since last summer. We’re working hard to get full production back up and running as soon as feasible “In a statement, Toyota stated.
Because of the chip scarcity, Toyota cut its global vehicle output by 40% in September.
As the epidemic disrupts supply lines, the corporation has also declared a series of production halts in recent months due to a scarcity of parts.
Volkswagen, General Motors, Ford, Nissan, Daimler, BMW, and Renault, among others, have reduced vehicle manufacturing in recent months.
“The chip shortage will continue to weigh on Toyota in 2022,” Tu Le, managing director of Sino Auto Insights, told reporters. “However, they’ll likely manage any issues better than their counterparts.”
“I believe they see opportunity in the situation because they believe they can manage the shortages better than GM and VW. As a result, I believe Toyota will have a good year in comparison to its competitors “Added he.
Toyota solidified its status as the world’s largest automaker last month, extending its lead over nearest rival Volkswagen.
Separately, Toyota informed buyers in Japan in January that they may face a four-year wait for delivery of its new Land Cruiser SUV.
The company stated that the delay had nothing to do with the worldwide chip shortage or supply chain problem.
It, on the other hand, declined to comment on the reasons for the lengthy delivery period.
The Land Cruiser, which debuted in 1951 and has sold a total of 10.6 million units as of August last year, is Toyota’s most popular vehicle.