Global automobile company Toyota Motor will have to cut production next month due to semiconductor shortage. The company said that it will make about 8 lakh vehicles, which is about one lakh units less than its average monthly production. The world’s largest automobile company in terms of sales can suffer a big loss due to reduction in production.
even a few months ago Toyota Production was hit by shortage of critical components and disruptions in the supply chain. However, despite this, the company has not changed its vehicle production target for the current financial year and has retained it at a record 9.7 million units. The Japanese company said last month that it aims to make an average of nine lakh vehicles per month between September and November. However, Toyota has said that this target has been reduced to about 8.5 lakh vehicles per month by December.
Morgan Stanley MUFG Securities has said in a report that despite the expectation of increasing semiconductor supply from the second quarter of this financial year, more semiconductors will be needed per vehicle due to the increase in the number of cars with electric vehicles and advanced driver assistance systems.
Honda Motor, which competes with Toyota, says that it semiconductor It will cut production of cars by up to 40 percent next month at two plants in Japan due to shortages as well as logistics issues. Earlier this year, the European Union (EU) had planned for $ 48 billion (about Rs 3,58,520 crore) to increase production of semiconductors. The aim is to reduce dependence on Asian markets for the supply of this component used in everything from cars to smartphones. This organization of 27 countries of Europe has brought the Chips Act to become self-reliant in the semiconductor segment. Semiconductors are tiny microchips used in everything from cars to smartphones. Most of the companies manufacturing semiconductors are in Asia. With the recovery in the economy after the devastation caused by Corona last year, it is becoming difficult due to the shortage of semiconductors. Some customers in Europe have had to wait for almost a year for their new car because of this.
(This news has not been edited by digitnews team. It has been published directly from Syndicate feed.)