In May, Japan’s eight major automakers produced approximately 1.6 million units across their global plants, down by a tiny 0.3% on year, Mysteel Global calculated based on their latest data. Industry watchers suggested that reduced output at domestic plants in May, stemming from delays in receiving components, caused overall output to continue declining for the third successive month.
Among the total, production at assembly plants across Japan in May declined by 15.9% on year and by 27.7% from April, the data show. Some makers were forced to trim their output significantly after disruptions to logistics in China – caused by the COVID-19 induced lockdowns in Shanghai and elsewhere – delayed component deliveries, according to sources.
A Tokyo-based flat steel trader explained that domestic output at Nissan and Honda surged on-year in May but only because of the low base in May 2021 when both makers were badly affected by shortages of semiconductors. “The Shanghai lockdown was lifted from June 1, but we haven’t heard that logistics have improved markedly,” the trader remarked. “I fear that the result for June output will be much lower than their initial production plans indicated,” he predicted.
This could be possible, Mysteel Global notes. Toyota Motor, Japan’s largest automaker, was initially planning to produce 800,000 units and 850,000 units in June and July respectively, but adjusted these targets lower by 50,000 units per month to 750,000 units and 800,000 units, as reported.
A sales official with a component maker in central Japan said automakers were planning to accelerate production from September, but if component deliveries do not become smoother, the carmakers won’t be able to reach their annual production targets. “Steel suppliers must be basing their own production on the carmakers’ targets, but (we) have to prepare to accept lower steel demand from the auto sector,” he added.
Toyota for example, plans to produce an average 850,000 units/month in July-September at all its plants worldwide, which would give it a global result of 2022 of 9.7 million units, as reported.
Written by Yoko Manabe, yoko.manabe@mysteel.com
Note: This article has been published in accordance with an article exchange agreement between Mysteel Global and SteelMint.
Leave a Reply