Toyota is experiencing a hybrid boom - buyers have been waiting months for cars

By: Volodymyr Kolominov | 01.04.2025, 14:27

The surge in demand for Toyota's petrol-electric hybrids has put suppliers in a difficult situation, resulting in component shortages and long waits for buyers.

Here's What We Know

Inventories of hybrids at Toyota dealerships in key regions - the United States, Japan, China and Europe - are low, two sources familiar with the situation told Reuters. Demand is outstripping supply, leading to delays in deliveries of cars to customers.

The surge in demand has been a challenge for Toyota, which is the dominant player in the hybrid market. However, it also confirms that the Japanese automaker's bet on hybrid technology is the right one, contrary to predictions by some competitors that battery electric vehicles will drive hybrids out of the market.

Global sales of hybrids, including plug-in models, have nearly tripled over the past five years, from 5.7 million to 16.1 million, according to LMC Automotive.

The waiting situation varies by region:

  • Toyota's European customers are waiting an average of 60-70 days for new hybrids, about twice as long as in 2020. The models with the highest demand are the Yaris Cross Hybrid and the RAV4 Plug-in hybrid.
  • In Japan, buyers wait two to five months.
  • At one dealership on the West Coast of the US, Prius hybrids sold out in mid-February and hybrid versions of the Camry have a few left.
  • In India, an important growth market for Toyota, delivery times have improved since last year but are still between two and nine months depending on the model.

The delays are due to a limited supply of components used in hybrid powertrains. These components are mainly manufactured in Japan and shipped overseas to final vehicle assembly plants.

Major production bottlenecks:

  • Shortage of magnets supplied to component maker Toyota Aisin Corp, resulting in delayed deliveries of electric motors.
  • Denso is also facing supply disruptions from second- and third-tier suppliers, resulting in delayed deliveries of its inverters.

Faced with component shortages, Toyota may turn to suppliers other than Denso in India and is also considering manufacturing inverters in the country.

Source: Reuters