Toyota Motor Corp. cut its industry’s annual sales projection by approximately 6%, citing concerns that supply restrictions could hamper the industry’s ability to satisfy rising customer demand.
Toyota Motor North America’s president of sales, Bob Carter, said the carmaker forecasts 15.5 million light-vehicle sales in the United States this year, down from 16.5 million in October.
“That is an adjustment that is not based on consumer desire,” Carter told journalists during a media roundtable on Wednesday. “It is entirely based on our forecasts of the supply environment in 2022.”
The negative revision reflects persistent supply chain restrictions caused by the global semiconductor scarcity, increasing raw material prices, and the rippling effects of the Ukraine crisis.
These concerns have resulted in a depleted new-vehicle inventory, which resulted in a 16 percent year-over-year fall in new-vehicle sales in the United States during the first quarter. According to Motor Intelligence, the seasonally adjusted annualised sale rate was 13.4 million vehicles in March, down significantly from 17.79 million a year ago.
Carter stated that Toyota has a clear understanding of its supply chain for the second and third quarters of this year, but the fourth quarter outlook remains “murky.” If its fourth-quarter supply forecast for the industry is incorrect, yearly sales could fall to as low as 14.9 million or 15 million, he said.
Nonetheless, the manufacturer believes its 15.5 million projection is “fairly confident.”