Corp informed several suppliers that the company had lowered its global manufacturing target for 2022 to 9.5 million units, according to the media reports. The Tokyo-based automaker giant said it was unlikely to meet a targeted goal of 9.7 million vehicle production for the financial year ending in the third month of 2023 due to the shortage of chips. It did not reveal how much the target would be lower then.

The latest target of 9.5 million vehicle production globally would still beat the previous year’s output by 10 per cent. However, depending on the supply of electromagnetic steel sheets, the figures could be lowered. The Automaker has been receiving the electromagnetic steel sheets from South Korea’s steel manufacturer POSCO (NYSE: PKX) Holdings Inc’s factory located in Pohang, which suspended its production as a typhoon flooded it in September.
The Automaker has been investigating whether it can meet its yearly production target of a record 9.7 million units after missing interim goals during the first four months of the financial year that began in April.

Last week, the announcement dashed optimism shared among Japanese auto manufacturers that the scarcity of chips would ease; this would enable the company to boost manufacturing in the second half of the year to make up for constrained output during the first.

Toyota had reduced its worldwide production target three times for the previous year through March 2022, lowering it from 9.3 million in May 2021 to 8.5 million in February. It ended up producing about 8.6 million units that year.