TOKYO (AUTO News) - Japanese motor industry giant Toyota saw its profits fall by 21% for the last three months of 2021 as the global chip shortage hit production.
The company said that its third quarter operating profit came in at 784.4bn yen.
The world’s best-selling carmaker also cut its annual production target by 500,000 vehicles to 8.5 million.
It comes as manufacturers around the world are struggling to find enough microprocessors for their products.
“We sincerely apologize for the inconvenience caused to our customers due to the series of production volume reductions since last summer. We are working to restore full production as soon as possible,” Toyota said in a statement.
In September, Toyota slashed its worldwide vehicle production by 40% because of the chip shortage.
The company has also announced a number of production suspensions in recent months due to a lack of parts as the pandemic hits supply chains.
Rival carmakers including Volkswagen, General Motors, Ford, Nissan, Daimler, BMW and Renault have also cut vehicle production in recent months.
“The chip shortage will still weigh on Toyota in 2022 but they’ll likely manage any challenges better than their peers,” Tu Le, managing director of Sino Auto Insights told the media.
“I think they actually see opportunity in crisis because of their confidence in managing the shortages better than GM and VW. So relatively, I see Toyota having a strong year relative to their competitors,” he added.
Last month, Toyota cemented its position as the world’s biggest car seller as it widened its lead over nearest rival VW.
Separately, in January Toyota warned customers in Japan that they would have to wait for up to four years to take delivery of its new Land Cruiser SUV.
The firm said the delay was not related to the global chip shortage or the supply chain crisis.
However, it refused to comment on the reasons behind the long delivery time.
Launched in 1951, the Land Cruiser is Toyota’s longest-selling vehicle, with a total of 10.6 million sold as of August last year.