Toyota Slashes Production Target Due to COVID-19

Toyota Slashes Production Target Due to COVID-19

Toyota Motor Corporation, the world’s largest manufacturer, is still battling to operate at full capacity. Yesterday, the business reported that 14 lines at eight plants had been shut down. Due to COVID-19-induced lockdowns in China, the suspension lasted up to six days in May.

In addition, the business has decreased its worldwide production target for May to 700,000 from 750,000 before. The corporation refused to offer an annual estimate of lost output data.

Toyota is one of the few manufacturers that has reduced output objectives due to China’s COVID-19 shutdown. Other prominent automakers that have stopped manufacturing include Tesla, SAIC, FAW Group, and Dong Feng Corp.

Toyota had to halt production at 18 lines in Japan earlier this year after a huge earthquake. The closure resulted in a reduction in output of 20,000 units. Toyota’s global production target was also reduced due to a chip scarcity.

Nonetheless, Toyota’s worldwide manufacturing increased steadily in 2022. In March 2022, the corporation achieved an all-time high of 866,775 units, as strong demand in other nations helped overcome a manufacturing decline in its home country.