Toyota Expects to Produce Around 10.6 M. Vehicles in 2023

Economy

Nagoya, Jan. 16 (Jiji Press)--Toyota Motor Corp. <7203> said Monday it has set its "baseline" global production target for 2023 at 10.6 million vehicles, which, if realized, would mark a record high for the Japanese automaker.

Toyota said it assumes the risk of global vehicle production falling around 10 pct short of the baseline target, given many uncertainties including over semiconductor shortages and the COVID-19 pandemic.

Since around the second half of 2021, the company has been forced to cut production repeatedly for semiconductor shortages and other reasons, causing confusion among its parts suppliers.

Based on the experience, the company came up with the baseline target with the "downward risk fluctuation range," in order to allow its suppliers to respond flexibly.

"After we caused considerable trouble to our suppliers last year, we decided to present early this year a baseline estimate with a range that helps (suppliers) draw up business plans, including personnel arrangements," Toyota Chief Communication Officer Jun Nagata told an online press conference.

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