Toyota production to top 10 million units in 2020

Toyota Motor Corporation aims to increase its total production to 10.4 million units globally combining its Toyota and Lexus brands for the fiscal year 2022 that ends in March 2023.

The success of the plan will see Toyota crossing the 10 million mark for the first time since 2014. The auto giant had decided to increase its production following an increase in demand after the rollout of the COVID-19 vaccine as well as an improved semiconductors supply.

Toyota has passed on the information to its main suppliers so that they could design their investment plans accordingly leading up to fiscal 2022.

The Japanese auto giant hopes China and the US would strengthen the automotive market.

Its decision will likely resonate across the industry and encourage manufacturers to follow the suit in the post-COVID world.

Toyota’s official reports revealed its production plans for this fiscal year ending March 2022. Toyota eyes a total of 9.5 million units.

Plans for the following year envision manufacturing 7.1 million units overseas and 3.3 million units in Japan. Overseas production will see a roughly 10% jump, while output in Japan will be increased by 3%.

Notably, Toyota sales surpassed that of Volkswagen in 2020, reclaiming its title as the world’s top-selling automaker for the first time in 5 years.

Toyota, which faced a serious supply shortage after March 11, 2011, earthquake and tsunami in Japan, has since stockpiled parts throughout the supply chain, including chips.

This contingency plan appears to have lessened the impact of the recent chip shortage compared with overseas rivals such as Volkswagen and General Motors.