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Toyota's Global Vehicle Production Fell Again In July, Raising Concerns About The Firm’s Annual Target

Toyota's Global Vehicle Production Fell Again In July, Raising Concerns About The Firm’s Annual Target
The global vehicle production of Japan’s Toyota Motor Corp has dropped by as much as 8.6 per cent in July compared to the same period a year ago, the automaker said on Tuesday, as it missed its previously announced production target for the fourth month in a row.
The company said that this drop in production was because of fresh outbreaks of Covid-19, severe and unexpected weather events, and a recall investigation, in addition to the already existing shortage of semiconductor chips.
Last month, the world's largest automaker by sales produced 706,547 vehicles globally, falling short of its target of around 800,000 units and the year-ago output of 773,135.
Production in the first four months of the current fiscal year, which began in April, fell 10.3% short of expectations.
There have been major issues in the global auto industry because of disruptions in global supply chains caused by the shortage of semiconductor chips as well as strict restrictions to combat Covid-19 infections imposed in China. Toyota's production  has however also been troubled by heavy rains in Japan, a recall investigation that led to a temporary halt in its production line, and outbreak of Covid-19 among workers of one of the Japanese factories of the company.     
Toyota reported that its domestic production dropped by 28.2 per cent in July, which was more than the record overseas production of vehicles of the company for July, which rose by 4.5 per cent due to a strong recovery in Europe, China, and the rest of Asia.
However, the continued weakness in the company's overall performance in July has given rise to concerns about Toyota possibly having to lower its annual production target that was set at 9.7 million vehicles, even in the face of relaxation of some of the Covid-related restrictions in China and an easing of the chip shortage.      
Earlier this month, the Japanese auto company announced that it would maintain its annual production target while increasing output through November, but which was partly dependent on supplies of auto parts and staff. the firm expects its production for September to rebound and be around 850,000 vehicles, which will be a monthly record.

Christopher J. Mitchell

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