Subaru CEO Tomomi Nakamura said the automaker was also hit by rising raw material costs. The automaker's global sales fell 13 percent to 200,000 in the quarter.
Subaru's output fell 20 percent to 207,000 in the quarter, while deliveries plummeted 35 percent to 173,000 in the same period.
CEO Tomomi Nakamura predicts rebound to 650,000 sales in 2022, but expects 2021 volume in Japanese automaker's most important market to fall short of 600,000.
A weakening yen has emerged as a windfall for the country's automakers, helping buoy results just when they need it most amid pinched production and derailed deliveries.
Japanese carmaker financials show how the COVID pandemic and the chip shortage continue to challenge them — despite positive fundamentals.