Toyota hopes to turn a profit, but will continue to focus on supply chain, electric vehicles

Toyota remains concerned about supply chain issues and global semiconductor shortages.

Even as Toyota Motor Corp expects annual vehicle production to fall short of its target, and it remains slightly positive for a quarterly profit increase. The world’s largest automaker is concerned about a strained supply chain and semiconductor shortages affecting its production capacity.

Toyota shared that continued improvement in semiconductor shortages should help boost production, but a Reuters report said investors’ focus will shift to demand, along with other potential disruptions to the automaker’s supply chain and electric vehicle strategy, when the company reports earnings. The Japanese automaker is expected to report a 3 percent rise in July-September operating profit to ¥772.22 billion ($5.3 billion), the highest since the December quarter, analysts said.

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Toyota has previously said it is unlikely to meet its target of 9.7 million vehicles this fiscal year due to chip shortages. The automaker did not give a new forecast. The company is also grappling with long-term challenges, including the slow uptake of electric vehicles. The company also faced a major setback as it had to recall about 2,700 units of its bZ4X all-electric SUV, which it introduced earlier this year.

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Despite this, Toyota recently unveiled its new electric sedan called the bZ3. This electric car promises a range of more than 600 km on a single charge. The EV is based on the e-TNGA vehicle platform. It is equipped with an LFP lithium-ion battery from Chinese electric car company BYD. Currently, Toyota plans to manufacture and sell this electric car in China.

Date of first publication: October 31, 2022, 1:47 PM IST