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

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. 
Bloomberg
By Bloomberg
19 Jan

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%.












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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.”

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