Toyota May Miss 2011 China Goal on Lack of Parts From Japan

Toyota Motor Corp. (7203), the automaker most affected by Japan’s record earthquake last month, may not be able to meet its China sales target of over 900,000 vehicles this year due to the impact of the disaster.


Toyota, the world’s biggest automaker, may have problems with parts stemming from the March 11 earthquake, and industrywide supply may fall short of demand in China, Masayoshi Hori, executive coordinator for the automaker’s China unit, said at the Shanghai auto show today. The carmaker’s China operation is monitoring the component situation, he said.


The company based in Aichi, Japan, lost production of 260,000 units in Japan from March 14 to April 8. It has resumed operations at all of its domestic plants, with output at 50 percent of normal levels. Manufacturing has been reduced at overseas plants, including those in North America, Europe and Australia.


“Toyota is the most vulnerable, as it is more exposed to suppliers in Japan,” said Ashvin Chotai, managing director of Intelligence Asia Automotive.


About 150 components are currently in short supply, compared with 500 two weeks ago, spokesman Masami Doi said today. As a result, factories in China are not operating on weekends, holidays or on overtime, Hori said.


Double China Sales


Separately, Hori said the automaker plans to double China sales in 2015 from the 846,000 vehicles it sold in 2010.


Toyota fell 3.1 percent to 3,125 yen at the 3 p.m. close of trading in Tokyo. The stock has declined 14 percent since March 10, the day before the temblor.


The maker of Prius hybrid cars is studying whether to produce hybrid parts such as motors, batteries and inverters in China, Hori said. Toyota will test electric cars in the country this year, he said.


The Toyota City based company expects the Chinese auto industry to grow by 10 percent to 15 percent this year, Managing Officer Shinji Kitada said today in Shanghai.


Chinese demand is strongest for compact cars and sports utility vehicles, he said, adding that Toyota is “able to secure solid profitability.”