Automotive manufacturer Toyota Motor has given a blow to the customers. On Wednesday, the company announced that it will cut production by 50,000 vehicles in the month of July. However, the company can still manufacture 800,000 vehicles. Explaining the reason behind this, the company said that such a decision has been taken due to semiconductor shortage and spike in COVID-19 cases.
Japanese carmaker Toyota said in a press release that it is difficult to produce more due to the shortage of semiconductors and the spread of COVID-19. Hence there is a possibility that the production plan may fall short. Due to the company’s decision to cut manufacturing of 50 thousand vehicles, customers may have to wait for the vehicles. However, Toyota has kept its annual global production target of 9.7 million vehicles unchanged.
Corona had an effect
The lockdown was imposed during the COVID epidemic. For this reason, it also had a bad effect on the manufacture and sale of vehicles. There was also a situation of interruption in the supply chain. After this, the biggest problem car makers are facing is the shortage of semiconductors. In addition, automakers have to contend with other manufacturers such as consumer electronics device makers for limited semiconductor supplies.
Target to manufacture around 10 million vehicles
Significantly, the company had set a target of manufacturing 9.7 million vehicles, about which the company had indicated during May itself that about 97 lakh vehicles could be manufactured globally. The automaker on Wednesday expanded production at its plant in Japan to manufacture vehicles including the GR Yaris subcompact and the bZ4X electric SUV next month.
4,800 crore investment
A few days ago, Toyota said that they plan to invest around Rs 4,800 crore in Karnataka for locally producing equipment to be used in electric vehicles (EVs). Toyota Kirloskar Motor (TKM) in association with Toyota Kirloskar Auto Parts (TKAP) will invest Rs 4,100 crore. Apart from this, the other company Toyota Industries Engine India (TIEI) will invest 700 crores.