Impact of Chip Shortage: Toyota will cut 3 Lakh Vehicle manufacturing Annually

Automobile companies have not yet recovered from the semiconductor shortage. In August, many companies may have seen growth on an annual and monthly basis, but they have admitted that this growth was less due to semiconductors
Image Credit: ET Auto
Image Credit: ET Auto

Semiconductor shortage is one of the major problem in Automobile companies. Companies have not yet recovered from it. Many companies may have seen annual and monthly growth in August, but the company acknowledged that this growth was less due to semiconductors. The impact of semiconductors is being seen on many companies even in September also.

Now Toyota has also announced to cut 3 lakh vehicle manufacturing annually due to shortage of chips after Mahindra and Maruti.

Production of 3.30 lakh units will be affected

Due to this shortage, the production of 70 thousand units will be affected worldwide in September, of which 1.5 lakh units will be from Japan and 40,000 units will be from other countries. At the same time, production of 3.30 lakh units will be affected in October compared to August, when 30,000 units will come from Japan and 1.8 lakh units will come from other countries.

Due to this shortage, production of 70,000 units will be affected worldwide in September, with 1.5 lakh units coming from Japan and 40,000 units from other countries. At the same time, production of 3.30 lakh units will be affected in October compared to August, of which 30,000 units will come from Japan and 1.8 lakh units will come from other countries.

The company did not inform about its effect in India

Image Credit: BBC
Image Credit: BBC

However, the company has not given any information about what will be the effect on its production plant due to the shortage of chips located in Bidadi (Karnataka) in India. The company sells Fortuner, Toyota Innova Crysta, Urban Cruiser, Glanza, Camry, Yaris, and Vellfire models in India, which are manufactured in the country also.

In Southeast Asia, Toyota has attributed this to the rising case of Covid-19. With the reduction in production, Toyota now aims to produce only 9 million cars by March 31 next year.

'No Production Day' declared by Mahindra         

Mahindra & Mahindra has announced that its automotive division is facing the problem of a shortage of semiconductors. However, in such a situation, for about 7 days this month will be 'No Production Day'. The company had said in an exchange filing that it would observe a 'no production day' at its automotive division plants due to a shortage of chips. However, its production volume is expected to decrease by 20 to 25% in September.

Semiconductors are used in electronic devices

Semiconductor is a silicon chip. They are used in many other electronic devices ranging from computers, vehicles, and cell phones. They do better work than other devices related to control and memory function.

Over the past few months, the use of semiconductors in the automotive industry has increased worldwide, as new models come equipped with navigation, Bluetooth connectivity, and electronic services such as hybrid power systems.

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