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Toyota Global Sales Drop 11% in April Owing to Elusive Chips and Pandemic Disruptions

On Monday, Japanese auto manufacturer Toyota Motor Corporation said its global sales had fallen 11% in April 2022 compared to last year. The Japanese giant fell short of an earlier plan of producing 750,000 vehicles worldwide, blaming it on the industry-wide semiconductor shortage and lockdowns in Shanghai, China.
Toyota Plant 6 photos
Toyota's European Manufacturing Plants and OperationsToyota's European Manufacturing Plants and OperationsToyota's European Manufacturing Plants and OperationsToyota's European Manufacturing Plants and OperationsToyota's European Manufacturing Plants and Operations
According to the news release, Toyota’s global production fell by 9.1% to 692,259 vehicles in April, compared to April 2021. The automaker’s global sales dropped by 11.1% in April compared to last year to 763,708 units, marking a decline for the eighth straight month.

Toyota said its domestic sales, excluding the sales of Daihatsu and Hino Motors, plunged close to 17% to 103,143 automobiles.

The world’s largest automaker by volume said it missed this year’s production targets due to the industry-wide components shortage and pandemic disruptions, slowing its recovery from a two-year slow-turn.

Last Tuesday, Toyota said it would cut its global production plan by 100,000 due to the semiconductor shortage. The bZ4X automaker said it would reduce the units produced to 850,000 for June due to the industry-wide chip shortage.

In March, the Japanese giant announced it would halt production in one of its local plants, going offline for eight days due to a lack of microchips. The automaker also made plans to cut output by 150,000 units in April but did not change its estimate of producing 9.7 million units worldwide.

Like other automakers and tech companies, Toyota has been forced to cut down production due to a shortage of microchips. The elusive components are used in various products, including vehicles, smartphones, and other electronic gadgets.

In April, Toyota’s local sales dropped by 16.8% compared to 2021 to 103,143 units (including minivans). Its output tumbled 9.0% to 243,425 vehicles in the reporting month. Its overseas sales dropped 10.2% to 660,565, while production fell 9.1% to 448,834 units.

Regionally, Toyota’s sales dropped in China by 30.7% to 111,134 units due to lockdowns in Shanghai. Output in the Asian country dropped 33.8% to 93,297 units. In North America, sales plunged 19.7% to 218,834 in April compared to a year earlier, while production fell 7.1% to 153,154 units due to microchip shortages.

 
 
 
 
 

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