Toyota to suspend its production in Russia

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Toyota to suspend its production in Russia
06 Mar 2022
6 min read

News Synopsis

Japanese automobile manufacturing company Toyota Motors has announced on Friday that it is going to shut down its manufacturing facility in Russia. The import of vehicles in Russia has also been halted for an indefinite duration. Toyota took this step because of the supply chain issue. Global chip shortage along with supply chain disruptions has severely affected the production of Global production of automobiles in the past few years. Supply chain disruption makes procurement of parts difficult which eventually affects the company’s production. The automaker company in its official statement said: "Toyota, like everyone else across the globe, is following the events unfolding in Ukraine with a profound concern for the safety of the Ukrainian people and hopes for a safe return to peace as soon as possible." Many western automobiles companies have also halted their production in Russia. Global tech companies Google, Dell have also announced plans to limit their services in Russia. Currently, the Japanese automaker produces around 80,000 units of vehicles in Russia. Other Japanese automobile giants such as Mitsubishi Motors, Honda Motor Company, have also decided to shut their operations in Russia due to supply chain crunch that may arise from the latest sanctions imposed on the country. Nissan Motors however has informed that as of now they will continue their operations in the country.

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