Home » Business » Toyota’s production fell 26% in October

Toyota’s production fell 26% in October

Toyota produced a quarter fewer cars in October than a year earlier due to the continuing shortage of semiconductors and other components, the company said, quoted by Bloomberg.

On Monday, the world’s largest carmaker announced that 627,452 cars had left the plants, with 845,107 produced in October 2020. Sales fell 20 percent during the month to 677,564.

Shares of Toyota fell 3.4 percent.

Manufacturers in Asia and around the world are facing an ongoing crisis in supply chains and are failing to boost production due to component shortages and an increasing number of infected in Southeast Asia, which has shut down plants. The lack of semiconductors will cost the industry $ 210 billion in lost sales this year, according to Alix Partners.

However, some manufacturers – such as Toyota and Nissan – have raised their earnings forecasts as higher demand fuels higher prices.

Toyota is confident that it will soon be able to increase production levels. In November, the company plans between 850,000 and 900,000 vehicles. Earlier this month, it also raised its forecast for operating profit to 2.8 trillion. yen, at 2.5 trillion. yen announced in August.

Nissan also said production fell 22 percent in October and sales fell 16 percent. Honda reported a 28 percent drop in production.

– .

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.