Toyota is hopeful about profit but will continue to focus on supply chain, EVs

Even as Toyota Motor Corp is expecting a reduction in its annual vehicle production against the set target, it remains a little positive for its quarterly profit increase. The world's biggest automaker is concerned about the strained supply chain and the semiconductor shortage that have been affecting its manufacturing capacity.

Toyota shared that a steady improvement in the situation of semiconductor shortage should help in increasing the output, however, according to a Reuters report, investors' focus will shift toward demand along with other potential disruptions in the supply chain and the automaker's electric vehicle strategy when the company announces its earnings. According to analysts, the Japanese automaker is expected to report an increase of three per cent in July to September operating profit to the tune of 772.22 billion yen ($5.3 billion), which is the highest since the December quarter.

(Also see | In pics: Toyota bZ3 is the latest electric sedan with over 600 km of range )

Toyota has already stated earlier that it is unlikely to meet its 9.7 million vehicle production goal for this financial year due to a scarcity of chips. The automaker did not provide a new forecast though. The company has also been grappling with longer-term challenges including its slow push into electric vehicles. It also faced a major setback as it had to recall around 2,700 units of its all-electric bZ4X SUV which it unveiled earlier this year.

Despite this, Toyota recently unveiled its new electric sedan called bZ3. This electric vehicle promises a range of more than 600 km on a single charge. The EV is based on the e-TNGA vehicle platform. It features a lithium-ion LFP battery from the Chinese EV-making company, BYD. Currently, Toyota has planned to produce and sell this electric car in China.