Toyota Wants To Build 10.6 Million Cars In 2023

Toyota announced its goal of producing 10.6 million vehicles in 2023 but warned that parts shortages, specifically semiconductor chips, could alter its plans. For thefiscal year ending in March 2023, the Japanese automaker, currently the world's second-largest behind the Volkswagen Group, is on course to build at least 9.2 million vehicles, down from the 9.7 million-unit prediction it previously made.

During the previous fiscal year, Toyota churned out 8.6 million units, a lower number due to the pandemic. For the upcoming 12 months, the carmaker said it "set a baseline production volume with a downward risk fluctuation range of approximately 10%." So the 10.6 million-unit goal can still change somewhat based on supply-related issues.

Toyota further clarified that the situation remains difficult to predict as chip suppliers continue to face production hurdles to meet global demand.

This month, Toyota aims to produce 700,000 vehicles, 200,000 of which will be manufactured in Japan, while the remaining 500,000 will roll off assembly lines in other countries, including the US.

Last month,Toyota temporarily suspended productionof popular models like theRAV4, 4Runner, Lexus GX, and a few other Lexus vehicles. The company released 2023's production goal in part to make it easier for suppliers to plan ahead with Toyota management.

Like all automakers, Toyota has struggled with the supply chain. However, it has done better than most, partly due to having a significant reserve supply of semiconductor chips on hand at the pandemic's onset back in 2020. Eventually, that stockpile ran out, and Toyota found itself in the same boat as its competitors.