Business Maverick

International Finance

Toyota Shares Sink Most in Nearly Two Years on Output Target Cut

Toyota Motor Corp. vehicles for export at the dockyard in the IPC Car Terminal at Tanjung Priok Port in Jakarta, Indonesia, on Friday, Dec. 10, 2021. Indonesia is scheduled to announce trade figures on Dec. 15.

Toyota Motor Corp. shares fell as much as 4.7% Wednesday morning, their biggest intraday loss since March 2020, after the company warned it expects to miss its production target for this fiscal year. 

Toyota’s head of purchasing, Kazunari Kumakura, said Tuesday it would be “very difficult” to meet a target of making 9 million vehicles in the year through March due to supply-chain challenges, including semiconductor shortages. While the Japanese automaker didn’t set a new target for the year, it said it is cutting February production by about 150,000 units.

Toyota pared its loss to 2.8% as of 9:32 a.m. in Tokyo. That’s the biggest drop since Dec. 20 and trims its 2022 gain to 12%.

More:
Top Carmaker Shutdowns Hint More to Come in Covid-Zero China
Toyota Expects to Miss Annual Output Goal on Chip Disruptions

SMBC Nikko Securities analyst Toshihide Kinoshita said it was noteworthy that even Toyota, with its relatively strong supply-chain management, can’t meet production targets. “The situation at other companies must be even more challenging,” Kinoshita wrote in a note.

Shares of Japanese automakers more broadly were lower Wednesday. Nissan Motor Co., Honda Motor Co. and Mazda Motor Corp. all fell more than 1%.

Toyota said Tuesday that while it is looking to produce a high number of cars in March and in the new fiscal year starting April, “there are still risks and with Covid continuing to spread, conditions are proving difficult to read.”

Gallery

Comments - Please in order to comment.

Please peer review 3 community comments before your comment can be posted

X

This article is free to read.

Sign up for free or sign in to continue reading.

Unlike our competitors, we don’t force you to pay to read the news but we do need your email address to make your experience better.


Nearly there! Create a password to finish signing up with us:

Please enter your password or get a sign in link if you’ve forgotten

Open Sesame! Thanks for signing up.

We would like our readers to start paying for Daily Maverick...

…but we are not going to force you to. Over 10 million users come to us each month for the news. We have not put it behind a paywall because the truth should not be a luxury.

Instead we ask our readers who can afford to contribute, even a small amount each month, to do so.

If you appreciate it and want to see us keep going then please consider contributing whatever you can.

Support Daily Maverick→
Payment options

Become a Maverick Insider

This could have been a paywall

On another site this would have been a paywall. Maverick Insider keeps our content free for all.

Become an Insider

Every seed of hope will one day sprout.

South African citizens throughout the country are standing up for our human rights. Stay informed, connected and inspired by our weekly FREE Maverick Citizen newsletter.