Toyota will offset lower output in Japan by increasing production in other markets.
The car manufacturer produced 3.35 million vehicles overseas in the first six months of 2022, 5.6 percent higher than the previous record. This came while Japanese production shrank by 18 percent to 1.73 million units, figures released by Toyota reveal.
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Key drivers of the increase in overseas output were factories in Asia, Europe, and Latin America. The vehicles produced in these markets require fewer semiconductors and have not been impacted by shortages as much as some other models.
Figures released for June reveal that Toyota’s overseas output hit 637,240 vehicles, with overseas sales reaching 750,450 vehicles, including models sold by Daihatsu and Hino. In Japan, production for the month of June dropped by 27 percent and sales in Japan also fell by 24 percent.
Auto News reports that Toyota has an order backlog of approximately 2 million vehicles but despite this, global procurement manager Kazunari Kumakura said the company still plans to build 9.7 million vehicles in the current fiscal year ending in March 2023.
“We are working hard with our suppliers to manufacture 9.7 million vehicles. We formulated our annual production plans based on an assumption that the situation would improve,” he said. “We will work hard to achieve such normal production as soon as possible.”
While output has increased in Asia, Europe, and Latin America, it is still down in North America. This is largely because of how many Lexus models are built in North America and the fact that their more advanced features require significantly more semiconductors.
