While Toyota expects vehicle production to exceed pre-pandemic levels, predicting 10.6 million vehicles will be produced in 2023, if it can’t source enough parts, especially semiconductors, It warns that final shipments may drop by 10%.
The newly issued target would be a huge leap from the 9.2 million plans the automaker is projecting for the fiscal year ending March.
Toyota produced 9.05 million cars in 2019.
As the world’s number one automaker, Toyota is a pioneer in the global automotive industry and its suppliers.
The Volkswagen Group said last week it expected supply bottlenecks to ease and was confident of an increase in orders in 2023.
Still, parts shortages due to COVID-related lockdowns, along with rising costs for materials and logistics, are plaguing the industry.
In a statement on Monday, Toyota said it was “currently working toward a capped output of 10.6 million units in 2023,” adding that there was “a downside risk volatility of about 10%.”
Despite forecasting a recovery last year, the company had to cut its production forecast for the current quarter in November, citing persistent chip shortages.