Toyota: Thailand epidemic disrupts spare parts supply and shuts down production at three local factories

On July 22, the Nikkei reported that Toyota stopped production at three factories in Thailand due to the disruption of the supply of key components caused by the epidemic in Thailand.

The shutdowns show that the epidemic is still putting pressure on the car supply chain. Sources say the shutdown will begin on July 21 and will last at least until July 28. Toyota said it would assess the situation and decide whether to resume operations from July 29.

Toyota, which had planned to stop production from July 24 to 28 because of the local holiday, could limit the adverse impact of supply chain problems to three days if procurement problems were resolved by July 29. These factories have an annual production capacity of 760000 vehicles, but only 440000 vehicles in 2020. Thailand is Toyota's third largest overseas production center, after China and the United States.

This is also the second time that Toyota's production in Thailand has been interrupted by the epidemic. In July this year, due to the influx of Delta virus, the third wave of the epidemic in Thailand intensified, and the Thai government imposed a commercial blockade on the affected provinces to control the epidemic. Toyota plants are also distributed in these areas, but car production is not prohibited.