Following the Toyota Group’s recent announcement that global production volumes for the fiscal year ending March 2023 will be lower than planned due to supply issues, said Justin Cox, Director of Global Production at GlobalData’s LMC Automotive Division.
Not only Toyota is struggling with delivery bottlenecks and material shortages. GlobalData estimates that through September this year, business disruptions — primarily caused by chip shortages, COVID-19 and other logistical challenges — have impacted global light vehicle (LV) production by over six million units.
Toyota’s global reach means it’s among the original equipment manufacturers (OEMs) hardest hit, particularly by component shortages caused by COVID-19 lockdowns in China.
Despite the group’s acclaimed supply chain management methods, Toyota appears to have overestimated the pace of supply chain normalization and this has led to the announcement that it will miss its global production forecast for fiscal 2023 (9.7 million).
Given the ongoing risks, Toyota’s outlook for global LV volume over this period could now drop to around nine million.