Toyota Motor Motor: It plans to produce a record 11 million units in the next fiscal year

According to the Nikkei Shimbun, Toyota motor plans to produce 11 million vehicles worldwide in fiscal year 2022, which begins in April this year. That's a 20 percent increase from 9 million vehicles in the current fiscal year.

Toyota's optimistic forecasts are based on "the COVID-19 pandemic is under control" and "there is an abundant supply of semiconductors." If the plan is realized, it will exceed the production record it previously set in fiscal year 2016.

Of its 11 million vehicles planned for production in 2022, 7.5 million will be produced overseas and 3.5 million will be produced in Japan, an increase of 25% and 15%, respectively, from the 2021 fiscal year plan.

The plan suggests that Toyota expects a strong recovery in the global automotive market. During the COVID-19 pandemic, this market has been suppressed by shortages of key components. Toyota has informed major component suppliers of the plan so that they can make production plans in advance.

To achieve this plan, Toyota will produce an average of more than 900,000 vehicles per month. Earlier this month, Toyota informed its suppliers that it plans to produce 1 million vehicles in April this year, which is bound to become the company's single-month record.

For component suppliers, meeting the 2022 target is not an easy task. A medium-sized supplier said it was still dealing with worker shortages from the coronavirus and local entry restrictions.

For Toyota itself, the impact of supply chain bottlenecks on the company does not seem to have diminished. Toyota intends to expand production in February and March, but that plan is hampered by a persistent shortage of chips, casting doubt on whether it can meet its goal of 9 million vehicles. Toyota produced 8.18 million vehicles in fiscal year 2020 and 8.74 million in fiscal year 2019.

According to LMC Automotive, global car sales were estimated at 81.05 million units last year, up from 77.76 million in the previous year and expected to be 85.95 million in 2022.