Chip Shortage Shrinks Toyota’s Production On A Global Scale

2022 Toyota Land Cruiser Modellista 2

Toyota’s production units will cut down on outputs as the company faces a shortage of semiconductor chips

So far, Toyota has managed to keep away from production halt, irrespective of how traumatic the conditions were. However, the chip shortage that has been causing severe troubles to the automotive OEMs has gripped the Japanese manufacturer this time. The chip shortage is forcing the brand to shrink its production by 40 per cent from next month onwards.

The production cut will be performed on a global scale at the company’s manufacturing units located in Canada, US, Mexico, and more. The brand adds that it will roll out lesser vehicle next month.  A cut of roughly 3,60,000 units (globally) is expected by the carmaker for September.

However, in other news, Toyota North America stated that the chip shortage would cost the brand a fortune, as it will have to lose around 60,000 to 90,000 vehicles. That said, the Japanese brand is assumed to be selective about the production cuts. Since trucks and SUVs hold a larger and more substantial market share, the halt would affect the production of models with low sales volumes.

2022 Toyota Tundra First Look front angle

Toyota is preparing to launch the next-generation Tundra globally. It is mainly targeted at the US market, and the brand claims that the production halt will not affect the Tundra’s launch. Also, the carmaker will keep its Texas-based unit running to produce the Tacoma pickup truck. Well, this will be the first production halt for the Japanese brand due to the semiconductor chip shortage.

Thankfully, the brand has not announced any production halt at its Indian manufacturing unit yet. In the Indian market, Toyota’s line-up includes Fortuner, Innova Crysta, Yaris, Urban Cruiser, Glanza, Vellfire, and Camry. The brand is preparing to introduce the reworked version of the Maruti Suzuki Ciaz as Toyota Belta in the Indian market supposedly.

toyota belta

The Belta will follow the footsteps of the Urban Cruiser and Glanza, which are rebadged Vitara Brezza and Baleno, respectively. Expect the Belta to remain mechanically identical to the Maruti Suzuki Ciaz with the 1.5L naturally-aspirated motor. It will also feature a 48V mild-hybrid system to boost the overall fuel efficiency. Gearbox options will include a 5-speed MT and a 4-speed automatic.