Toyota expects to miss annual output goal on chip disruptions

Toyota said it is unlikely to reach its goal of manufacturing 9 million cars this fiscal year through March due to persistent chip shortages.

The world’s No. 1 automaker is paring back production to 700,000 units in February, around 150,000 units lower than its original goal for the month, according to a statement Tuesday, which cited a semiconductor crunch due to continued demand across industries. Toyota didn’t set a new annual target, saying only that final output is expected to be lower than previously forecast.

Toyota already slashed its annual production outlook in September as COVID lockdowns in Southeast Asia disrupted its ability to procure key parts from the region.