Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Toyota Sees Vehicle Output Recovery in 2023, With Some Risks

Published 16/01/2023, 10:03
Updated 16/01/2023, 10:03
© Bloomberg. Vehicles on the production line at the Daihatsu Motor Co. Kyoto plant in Oyamazaki, Kyoto Prefecture, Japan, on Friday, Oct. 7, 2022. Daihatsu, wholly-owned subsidiary of Toyota Motor Corp., opened the renovated Kyoto plant to the members of media on Friday.

© Bloomberg. Vehicles on the production line at the Daihatsu Motor Co. Kyoto plant in Oyamazaki, Kyoto Prefecture, Japan, on Friday, Oct. 7, 2022. Daihatsu, wholly-owned subsidiary of Toyota Motor Corp., opened the renovated Kyoto plant to the members of media on Friday.

(Bloomberg) -- Toyota Motor Corp. (NYSE:TM) expects vehicle production to exceed pre-pandemic levels, forecasting output of as many as 10.6 million vehicles during 2023 while warning that final shipments could be 10% lower if it is unable to procure enough parts, especially semiconductors. 

The newly issued target would be a significant jump from the planned 9.2 million vehicles that the Japanese carmaker forecasts for the fiscal year through March. Toyota made 9.05 million vehicles in 2019. 

As the world’s No. 1 No. 1 carmaker, Toyota is a bellwether for the rest of the global automobile industry and its suppliers. Volkswagen (OTC:VWAGY) said last week that it expects supply bottlenecks to ease and that it was confident for 2023, citing higher orders. Even so, parts shortages stemming from Covid-related lockdowns have challenged the industry, on top of rising costs for materials and logistics.

“Currently, we are working toward a production volume with a ceiling of 10.6 million units for 2023,” Toyota said in a statement Monday, adding that there’s a “downward risk fluctuation range of approximately 10%.”

Despite predicting a recovery last year, the Japanese auto manufacturer had to lower its production outlook for the current period in November, citing a persistent lack of chips. 

“As Toyota says, this outlook takes into consideration downside risks due to parts procurement,” said Bloomberg Intelligence analyst Tatsuo Yoshida. “The target of 10.6 million vehicles reflects a clear and strong desire by Toyota to reach that goal.”

Underscoring the chip shortage, Toyota temporarily gave new car buyers just one smart key instead of two late last year, seeking to ration semiconductors. The measure applied to 14 models for sale in Japan, including Crown sedans, Prius hybrids and the battery-electric vehicle bZ4X. 

“The situation this year remains difficult to predict due to factors such as semiconductor shortages and the spread of Covid-19,” Toyota said.

(Updates with analyst’s comment in sixth paragraph. A previous version of this article corrected the 2019 figure to reflect output instead of sales.)

©2023 Bloomberg L.P.

© Bloomberg. Vehicles on the production line at the Daihatsu Motor Co. Kyoto plant in Oyamazaki, Kyoto Prefecture, Japan, on Friday, Oct. 7, 2022. Daihatsu, wholly-owned subsidiary of Toyota Motor Corp., opened the renovated Kyoto plant to the members of media on Friday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.