TMP says Avanza won’t hit sales target due to chip shortage

TMP may not reach sales target of 1,500 Avanzas per month

Toyota Motor Philippines (TMP) just launched the all-new Avanza today and even though they would like to accommodate/sell to as many of you as possible, even the undisputed number 1 automaker in the world (and in the country) isn’t immune from semiconductor shortage problems.

At the press conference today, TMP president Hiro Okamoto said that they aim to sell 1,500 Avanzas per month, but are setting a more modest target of 1,000 units for now. They cannot sell as many because they cannot build it fast enough. There simply are not enough semiconductors to go around.

In January 2022, Toyota HQ said profit went down by 21% in the last three months of 2021 because of chip supply problems. Last month, the automaker announced that they will cut global production for this month (March) by 100,000 units. Several lines in Toyota’s plants were shut down for close to two weeks this month already, with several more shutdowns lined up before March ends.

Toyota has already lost 140,000 units in January and by April it estimates losses to hit 480,000.

There’s no denying that the Avanza is a popular model. Its 2012 predecessor was selling close to 1,300 units in 2017, five years since it was launched in the country. That is why TMP has such high hopes for it.

If you have plans on buying any variant of the all-new Avanza, line up and get yours before supply runs out.