Total global production of the eight major Japanese automakers in April compared to the previous year to 1.66 million vehicles, down 20.1% fell. Recently released industry data reveals the production decline in Shanghai due to the global chip crisis caused by COVID-19.

Of the eight automakers, Toyota Motor Corp. and Honda Motor Co. Six automakers, including one, fell. Toyota even fell 9.1% to 692,259 cars, below the forecast of 750,000 units.

First of all: why did the chip crisis arise and what consequences does it have?

The chip crisis has put many brands in a very difficult situation over the past two years; even some big companies close to closing quite a serious problem. Although the COVID-19 pandemic has been cited as the cause of the crisis, the situation is actually somewhat more complicated.

In addition to the pandemic, the crisis is a common consequence of many different factors. For example, two of these factors; between some industries to attract the attention of chip manufacturers. competition and poor planning. Due to the chip crisis, many technology giants, especially cars, have technological products began to fall behind in production. For this reason, as the number of vehicles on the market decreases, so do car prices.

The most detailed explanation on the subject came from Toyota.

• Honda: 54% drop
• Mazda: 49.9% decrease
• Nissan: 26.5% decrease
• Toyota: 11.1% decrease

Toyota and other automakers have had to cut production due to the production crisis of chips used in a wide variety of products, such as cars, air conditioners and smartphones, due to the increasing demand with the accelerated digitalization. Honda’s global production fell 54.2% due to slow production in China. We also recently told you that Honda’s popular Civic model has been walked 3 times in the past 40 days. One of the biggest factors for this could of course be such a drop in production as a result of the chip crisis.

Mazda Motor Corp. and Nissan Motor Co. decreased by 49.9% and 26.5% respectively. Toyota said its global sales fell 11.1% year-on-year to 763,708 vehicles in April, the eighth month lower. Sales in Japan fell 16.8% to 103,143 units, including mini vehicles, while domestic production fell 9.0% to 243,425 vehicles. Toyota’s overseas sales fell 10.2% to 660,565 vehicles, while production fell 9.1% dropped to 448,834 units.

Toyota said in a statement. “Conditions related to both COVID-19 and parts supply trends remain unclear, but to minimize the impact. We will continue to do everything we can† said.

The worldwide production of Subaru Corp. on the other hand grew by 63.3% in three months. However, the rest of the car companies are not so lucky. If the chip crisis is not resolved soon, it is therefore quite possible that we will see more price increases.