Honda Motor said it planned to cut production at two plants in Japan by up to 40% for the rest of the month due to worsening supply chain and logistics problems, according to local reports.

The automaker said it would cut production at its assembly plant in Saitama prefecture, just north of Tokyo, by 40% this month due to shortages of parts such as semiconductors.

The plant has annual capacity for 250,000 vehicles and makes the CRV, Civic, Freed Insight and e (EV) models. The company blamed the latest supply chain disruption on the Covid pandemic.

Honda also said it planned to cut output by 20% in September at the two production lines at its Suzuka plant in western Japan. The plant has capacity of 530,000 units and makes mainly small cars such as the N-Box and N-van plus the HRV, Vezel, Jazz and Fit.

Honda domestic vehicle production had returned briefly to normal in June after the widespread regional Covid disruption in the second quarter but the automaker began to make production adjustments again in July as new parts shortages emerged.

Meanwhile, Toyota Motor kept its global vehicle production target of 9.7 million for the current fiscal year ending in March 2023 as its supply chain bottlenecks continued to ease after the company made substantial production cuts in the first half of 2022.

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