After denying it last week, Toyota said on Wednesday its domestic output would return to about 90% of pre-quake levels in June thanks to faster than expected recovery of parts supplies.
The forecast, more positive than a previous estimate of 70% production levels, will be a huge improvement on April when output was just 21.6% of that in the same month last year, AFP reported.
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Production recovered to around 70% in May as suppliers – many of whom were impacted by the 11 March quake and tsunami catastrophe – were able to restore operations faster than expected.
There are no precise figures for production abroad, but expectations for June are between 70 and 100%, Toyota spokesman Paul Nolasco told AFP.
Production will still be 70% in North America while almost all factories in Europe will operate at 100%, he added.
The 11 March earthquake/tsunami that hit parts supplies and some car factories is set to increase demand for new cars in the longer run, the report noted.
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By GlobalData“Lots of cars were washed away in the tsunami in the Tohoku (northeastern) region, and it’s certain that there will be surging reconstruction demand,” Tatsuya Mizuno, who heads the Mizuno Credit Agency, told AFP.
“Production may not be able to catch up with the demand, resulting in missed sales opportunities for automakers.
“It will take some time (for automakers) to achieve full production,” he said, adding that it would probably take half a year or more for vehicle manufacturing to return to normal.
Electronics firm Renesas Electronics, which has a 40% global share of microcomputers used in vehicles, resumed partial operation on Wednesday (1 June) at its quake damaged chip factory in Ibaraki prefecture, northeast of Tokyo.
But it will not be able to begin shipments until late August as microchips need to go through several manufacturing and test processes.
Looking at the wider economy, Bank of Japan governor Masaaki Shirakawa said industrial supply disruptions were easing more quickly than expected.
