Toyota suspended operations at its 14 assembly plants across Japan due to a malfunction in its production system. 

The suspension has led to a halt in domestic output for the world’s largest automaker.

The cause of the glitch, which prevents Toyota from ordering components, is currently being investigated. However, a spokesperson stated that it is unlikely to result from a cyberattack.

Starting on Tuesday morning, Toyota suspended operations at 12 plants in Japan, followed by the remaining two in the afternoon, as confirmed by the spokesperson. The extent of the production loss remains uncertain.

Toyota had been experiencing a rebound in domestic production after facing reduced output due to semiconductor shortages. The first half of the year saw a 29% increase in output, marking the first such rise in two years.

During the first six months of the year, Toyota’s Japan output averaged approximately 13,500 vehicles per day, excluding those from Daihatsu and Hino, sister companies within the group.

Last year, operations were suspended for a day following a cyberattack on a supplier, impacting Toyota’s parts ordering process. The company eventually resumed operations using a backup network.

Industry analysts suggest that Toyota might face challenges in compensating for the lost production during this current outage. 

Running extra shifts could be one strategy, although the company had been operating at full capacity.

Seiji Sugiura, an Tokai Tokyo Research Institute analyst, pointed out that little additional production room was available as output was already at maximum capacity.

This incident’s impact extends beyond Toyota itself. Toyota Industries, a group subsidiary, also partially suspended operations at two engine plants due to the glitch in the automaker’s system.

Known for its just-in-time inventory management, Toyota keeps costs down but faces risks to its production when supply chain issues arise.

Although the exact cause of the malfunction remains unclear, recent days have seen heightened alertness in corporate Japan due to harassing phone calls reported by businesses and government offices.

These calls are believed to originate from China and are connected to Japan’s release of treated radioactive water from the damaged Fukushima nuclear power plant into the Pacific Ocean.

Following the news, Toyota’s share price experienced a 0.21% decline, closing at 2,431.5 yen. The stock had initially shown deeper negative movement during the morning.