TOKYO, Japan: Amidst semiconductor shortages and COVID-19 parts supply disruptions, Toyota has reduced its July global production target by 50,000 vehicles.
In a statement, the Japanese company, the world's largest car maker by volume, said it expects to assemble 800,000 vehicles next month, stating, "As it remains difficult to look ahead due to the shortage of semiconductors and the spread of COVID-19, there is a possibility that the production plan may be lower."
Toyota and other car auto manufacturers are continuing to struggle with supply-chain disruptions and component shortages caused by the COVID-19 pandemic, including the recent lockdowns in China.
Automakers are also competing with other manufacturers, such as consumer electronics makers, for limited semiconductor supplies.
Although it indicated in May that supply chain disruptions could eventually force it to lower its annual global production target, Toyota stuck with its plan to manufacture 9.7 million vehicles.
Toyota also said it will further reduce production in Japan next month at plants that make various vehicles, such as GR Yaris subcompact and the bZ4X electric SUV.