The global automobile industry is still suffering from a shortage of semiconductor microchips, causing the majority of automakers to adopt precautionary measures to ensure their survival in these trying times.
According to a recent BBC news article, Toyota has decided to restrict its global vehicle manufacturing by 40% due to a lack of semiconductor microchips. It went on to say that the Japanese automaker had intended to produce 900,000 cars next month but has now opted to decrease the aim to 540,000 units.
Honda, Nissan, Volkswagen Audi Group, Daimler, BMW, Stellantis Group, Hyundai Motor Group, General Motors, Ford Motor Company, Jaguar Land Rover Automotive, SAIC Motor, and Geely, to mention a few, have also seen a decline in production figures.
Manufacturing factories in the Czech Republic, France, Japan, the United States, and Asian countries have apparently been heavily struck by the pandemic’s repeating and destructive waves. The revival of COVID-19 has also been blamed for inconsistency in trade and commercial activity in these regions.
According to the article, Toyota is currently enjoying reasonably constant production figures as a result of having acquired a massive stockpile of semiconductors in order to maintain sales stability following the Fukushima earthquake and tsunami ten years ago.
With large growth in global demand for automobiles, it is expected that the effects of the global chip scarcity would worsen.
The Effect on the Pakistani Market
The repercussions of the semiconductor chip scarcity are being felt all across the world, and Pakistan is no exception. Several automakers, including Toyota Indus Motor Company (IMC), have reported delayed deliveries, which are being blamed mostly on the scarcity.
The Toyota IMC reported a significant increase in sales in July, which (as industry observers suspected) is mostly attributable to the lowering in vehicle pricing following the implementation of the new auto policy and the unexpected increase in production numbers last month.
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