Factory Restart Due to Semiconductor Shortage Resolution
Some Items Still Scarce but Favorable Conditions to Continue for Now
As the semiconductor shortage in the Japanese automotive industry eases, the new car sales of Japan's four major automakers in the United States increased by 28% compared to the previous year. With some improvements in the semiconductor supply chain, factories that had halted operations have resumed production lines, indicating a gradual recovery in activity.
According to the Nihon Keizai Shimbun (Nikkei) on the 2nd, the combined new car sales of four Japanese automakers, including Toyota, in the U.S. in May reached 394,000 units, a 28% increase compared to the same month last year. Sales have exceeded last year's figures for three consecutive months, marking a double-digit growth rate for the first time in six months. Nikkei analyzed that "the semiconductor shortage has been resolved, leading to production recovery and increased sales."
Looking at each company, Toyota's sales reached 187,000 units, a 6% increase compared to the same month last year. The comparison month, May of last year, was a period when the semiconductor shortage was severe. At that time, Toyota temporarily suspended operations at 10 lines across 9 plants in Japan. Honda, which saw its sales drop by 40-50% compared to 2021 during the same period, recorded a 58% rebound with 119,000 units sold.
Additionally, Subaru's May sales increased by 28% year-on-year to 54,000 units, while Mazda's sales more than doubled to 33,000 units during the same period.
Nikkei stated, "With improvements in semiconductor procurement, incidents of production line stoppages have significantly decreased," and added, "Measures such as expanding procurement sources during the shortage period also played a crucial role."
However, concerns remain that it is still too early to be completely reassured. Citing a senior industry official, Nikkei reported, "It is not fully recovered yet. There are still shortages of specific semiconductors depending on the vehicle model."
The industry outlook remains positive for the time being. This is because shipments of pre-ordered vehicles that could not be produced during the semiconductor shortage period are also contributing to increased sales. Nikkei added, "Contrary to expectations that consumer purchasing sentiment would freeze due to U.S. interest rate hikes, each company currently believes there is no decrease in demand."
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