Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

COVID-19 induced supply chain disruptions are likely to cause more auto output cutbacks in Japan, according to a local industry group.

 

Akio Toyoda, president of Toyota Motors and head of the Japan Automobile Manufacturers Association, hinted to the media that October domestic output levels may be lower than expected. However, Toyoda also added that the carmaker will try to speed up production before its year-end in March 2022 to achieve Toyota’s annual 9.3 million units target.

 

The ongoing global semiconductor shortage has also exacerbated an already subdued automobile industry in Japan and other countries. Toyota had projected a 40pc output cutback for September, in mid-August this year following shortage issues. The company’s sales outlook for the year, however, remains positive.

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