Toyota plans to cut production by 20% in Japan in April due to a serious shortage of chips and other materials.

Published: Mar 11, 2022 16:55
Toyota plans to cut production by 20% in Japan in April due to a serious shortage of chips and other materials. A spokesman for Toyota Motor of Japan said on Friday (March 11) that in the three months from April, its domestic production will be up to 20% lower than previously planned to ease the pressure on suppliers caused by shortages of chips and other parts. A Toyota spokesman said the production cuts were meant to lighten the burden on suppliers. Tight supply chains have led to severe shortages of chips and other materials, forcing suppliers to adapt to Toyota's ever-changing production plans.

A spokesman for Toyota said on Friday (March 11) that its domestic production would be up to 20% lower than previously planned in the three months from April to ease the pressure on suppliers caused by shortages of chips and other parts.

A Toyota spokesman said the production cuts were meant to lighten the burden on suppliers. Tight supply chains have led to severe shortages of chips and other materials, forcing suppliers to adapt to Toyota's ever-changing production plans.

Compared with previous plans, Toyota plans to cut domestic production by about 20% in April, 10% in May and 5% in June, the spokesman said.

Toyota hopes to review the risks of production plans three months in advance to ensure that suppliers will be able to steadily prepare equipment and personnel and give priority to safety and quality.

Toyota President Akio Toyoda said at a meeting with union members on Wednesday that suppliers would be "exhausted" unless they had a "sound" production plan. "We hope to work with suppliers and distributors to overcome the current crisis situation."

Toyota said April to June would be a "deliberate cooling" period, with safety and quality becoming top priorities.

A company spokesman said the effort reflects Toyota's intention to share information with suppliers as soon as possible so that they can make their own production plans.

Toyota expects to produce a record 11 million vehicles in fiscal year 2022 as long as it ensures a steady supply of chips.

Toyota has shown relative resilience under the negative impact of the epidemic and has been trying to increase production to meet global demand for new cars. The company said last month that it planned to produce 950000 cars and trucks in March, up from 843393 in the same period last year.

Toyota production was also hit by a brief shutdown of all 14 factories in Japan earlier this month because of a virus attack on a supplier's computer system.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
Solid-State Battery Weekly Analysis (May 29 – June 4, 2026)
11 mins ago
Solid-State Battery Weekly Analysis (May 29 – June 4, 2026)
Read More
Solid-State Battery Weekly Analysis (May 29 – June 4, 2026)
Solid-State Battery Weekly Analysis (May 29 – June 4, 2026)
Material Prices: Most solid-state battery materials declined. LPSC dropped 5.5% to RMB 7,280/kg, Li₂S fell 3.8% to RMB 1,530/kg, Li metal and LFP fell 1.7% and 1.4% respectively. Only P₂S₅ rose 2.6%. Oxide electrolytes (LATP, LLZO) were flat.
11 mins ago
[Automotive: Charging Time Reduced By 14%, Rolls-Royce's First All-Electric Vehicle Upgraded]
16 mins ago
[Automotive: Charging Time Reduced By 14%, Rolls-Royce's First All-Electric Vehicle Upgraded]
Read More
[Automotive: Charging Time Reduced By 14%, Rolls-Royce's First All-Electric Vehicle Upgraded]
[Automotive: Charging Time Reduced By 14%, Rolls-Royce's First All-Electric Vehicle Upgraded]
Recently, Rolls-Royce Motor Cars announced the launch of the Spectre Series II. As an upgrade to the brand's first all-electric model, the Spectre, the new vehicle features optimized battery cell technology, resulting in significantly improved overall performance. Under the WLTP standard, the driving range has increased by up to 18% to 628 kilometers, while the charging time has been reduced by 14%. Additionally, the brand has recalibrated the powertrain, delivering quicker power response and more precise handling.
16 mins ago
[Lithium Battery: Hong Kong's First Decommissioned Power Battery Recycling Facility To Officially Commence Production]
17 mins ago
[Lithium Battery: Hong Kong's First Decommissioned Power Battery Recycling Facility To Officially Commence Production]
Read More
[Lithium Battery: Hong Kong's First Decommissioned Power Battery Recycling Facility To Officially Commence Production]
[Lithium Battery: Hong Kong's First Decommissioned Power Battery Recycling Facility To Officially Commence Production]
On June 3, it was reported that Hong Kong's first large-scale recycling facility for decommissioned electric vehicle batteries will officially commence production in June 2026. The facility will process waste power batteries into regenerated black mass, achieving the resourceful reuse of waste materials. According to estimates from the Environmental Protection Department, the quantity of decommissioned electric vehicle batteries generated in Hong Kong will increase year by year, growing from approximately 1,300 metric tons in 2026 to 6,700 metric tons by 2030. The locally planned producer responsibility scheme for electric vehicle batteries is evaluated to generate an annual economic added value of approximately 66 million Hong Kong dollars and create over 100 full-time jobs in the local solid waste recycling sector. Currently, there are five licensed enterprises in Hong Kong qualified to dispose of automotive lithium batteries.
17 mins ago