Hybrid Delays: Toyota Facing Strong Demand

• Toyota plans on boosting production in India.

• Consumers will have to be patient.

It’s a happy problem when a manufacturer fails to meet demand for its products. This is currently the case with Toyota, which, despite this favorable situation, finds itself with other issues, namely those related to a shortage of parts, resulting in longer waiting times for customers who are leaning towards the hybrid alternative while awaiting a wider shift to electric cars.

The Japanese giant is currently reaping the rewards of its stubborn pursuit of hybrid technology, an engine that Toyota has mastered since the turn of the century. In fact, demand for this type of vehicle has greatly increased over the years, with Toyota selling no less than 16.1 million units in 2023, compared with just 5.7 in 2018.

Waiting times vary by market. In Europe, customers must wait an average of between 60 and 70 days, which is twice as long as in 2020. Certain models, such as the Yaris Cross hybrid (not sold in North America) and the RAV4 plug-in hybrid, are particularly affected by these delays. In Japan, the wait can range from two to five months, and in India from two to nine months, depending on the model. In the United States, some dealers are out of stock, particularly for the Prius and Camry hybrids.

Tensions in the supply chain are largely due to shortages of critical components for hybrid powertrains, such as magnets and inverters. Aisin, one of Toyota’s main suppliers, is experiencing difficulties in sourcing rotors and stators, delaying hybrid motor production. Denso, another major supplier, was forced to delay delivery of inverters, essential components for the smooth operation of electric motors.

Fortunately, Toyota’s strategists are seeking to correct the situation by increasing production capacity. In the United States, for example, a new battery plant in North Carolina will support the hybrid technology offensive in our neighboring country.

As Reuters reports, Toyota isn’t the only one making its customers wait. Honda is also one of the players affected by this strong demand for hybrid cars, as are Hyundai and Kia, who have revised their hybrid vehicle predictions upwards.

Let’s bet that the hybrid craze will remain strong over the coming months, especially if the Trump administration continues its tariff war with its trading partners.