Toyota hikes profit forecast 54%, shrugs off global chip supply ISSUES

TOKYO (Reuters) – Toyota Motor Corp on Wednesday jacked up its full-year earnings forecast by a bigger-than-expected 54% to a record $19 billion, raising its vehicle sales target as global demand led by China rebounds from a coronavirus pandemic-induced slump.

Unlike other automakers, including Japanese peers Nissan Motor and Honda Motor, that have had to cut production because of semiconductor shortages, the world’s biggest automaker said it is raising output.

Shares in Toyota, the world’s biggest automaker by vehicle sales, rose 2.3% after the new forecasts were released.

The automobile industry has been grappling with a chip shortage since the end of last year, which has in some cases been exacerbated by the former U.S. administration’s sanctions on Chinese chip factories. Reuters News

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