Chip shortage forces Toyota to take major steps; cuts production & shuts Russian plant

KUALA LUMPUR: The ongoing semiconductor shortage is taking a toll on the automotive industry and one of the brands on the receiving end is Toyota.

Over the summer, the world’s biggest automaker put its best efforts to ramp up the output, however, the persistent supply chain troubles have forced it to cut its global production plan by - 100,000 units in October and 50,000 units in November.

Also Read: Toyota Innova, Hilux, and Fortuner updated for Malaysia

Last month Toyota wanted to manufacture 900,000 units a month from September to November. And now the struggling automaker will produce 800,000 units in October and an average of only 850,000 units per month from October to December 2022.

Given the setback, Toyota will be sticking to its initial production plan of manufacturing 9.7 million vehicles (Toyota & Lexus) in the current financial year (ending March 2023).

In Japan, Toyota will be suspending production on certain dates with the slowdowns affecting production on 10 lines at 7 plants (out of 28 lines across 14 plants). The list of affected Toyota plants includes - Toyota Industries Corporation, Takaoka plant, Motomachi plant, Tsutsumu plant, Miyata plant, Tahara plant, and Hino Hamura plant.

The table below mentions the Toyota and Lexus models most affected by the parts shortage -

Toyota	GR Yaris, Harrier, RAV4, Camry, Corolla Sport, Crown, FJ Cruiser, 4 Runner, and Land Cruiser Prado
Lexus	CT, GX, ES, IS, NX, LS, RC, UX, RX, RC F, UX300e, and NX450h+

Also Read: 2023 Lexus RX introduced: Here’s all you need to know about the 5th gen SUV

How will Toyota’s recent production cut affect Malaysia?

In the local market, most Toyota cars are either locally assembled or fully imported from Thailand. The models to barrier the heat of the production cut are the Harrier and GR Yaris. As for Lexus, the availability of the entire local lineup would be disturbed as they all are fully imported from Japan.

As for Toyota’s Russian plant, St Petersburg, it will be closed soon and maybe sold. The reason is the same, shortage of key components and materials following Russia’s invasion of Ukraine. This particular facility has a capacity to build 100,000 units annually and mainly manufactured Camry and RAV4.

Despite all the hardships (semiconductor shortage & pandemic), Toyota will make every effort to deliver customers' vehicles at the earliest without much delay.

Also Read: A 4-year long waiting period for Lexus LX in Japan