Toyota Motor Co.’s global production fell by more than a quarter in October compared to the same period a year ago, as the shortage of semiconductors and other parts continues to hit automakers.
The world’s number one automaker said Monday it produced 627,452 cars in October, down from 845,107 units in the same period a year earlier. Global sales fell 20% during the month to 677,564 units.
Japanese automakers have struggled to restore production levels due to the outbreak of coronavirus cases in Southeast Asia, along with shortages of parts and semiconductors. The chip shortage is expected to cost the auto industry $210 billion in losses in sales this year, according to Alex Partners. However; Some companies, such as Toyota and Nissan Motor, raised their profit forecasts, with booming demand that led to higher prices and an increase in car profits.
Toyota shares fell 3.4% Monday, outpacing the losses of the Nikkei 225 and Topix indexes.
Toyota appears confident that its products will be back on track soon. The automaker plans to manufacture about 850,000 to 900,000 units in November and ramp up production in the latter half of the fiscal year. It also raised its annual operating profit to 2.8 trillion yen earlier this month, after achieving 2.5 trillion yen in August.
“Toyota is likely to start catching up with production rates from January,” Jefferies analyst Takaaki Nakanishi wrote in a note earlier this month. “An early recovery of supply capacity in this context should generate volume and price impacts, and allow for” Toyota to maintain strong earnings growth.
For its part, Nissan said that global production fell by 22% in October compared to the previous year, while sales of “Honda Motor” fell by 16%, and production fell by 28%, to record a decline for the fifth consecutive month.