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Where's my car, dude? Toyota hybrid buyers facing long waits

Where's my car, dude? Toyota hybrid buyers facing long waits

Four people with knowledge of the situation say that Toyota's gasoline/electric hybrids are in high demand, and suppliers are struggling to keep up. This has led to parts shortages and long waits for buyers.

Two people said that Toyota dealers in major markets such as the U.S.A., Japan China and Europe have low stock of hybrids. Toyota, which is the leader in hybrids, faces a major challenge from this surge in demand. It also validates the Japanese automaker’s bet in the technology, despite predictions from some competitors that battery-only vehicles would wipe hybrid demand out.

LMC Automotive's data shows that global sales of hybrids and plug-in models have nearly tripled in the last five years.

One person said that Toyota customers in Europe are currently waiting 60-70 days on average for new hybrids. This is about twice as long as it will be by 2020. Toyota says that the Yaris Cross Hybrid and RAV4 Plug-in Hybrid are the vehicles with the highest demand in Europe and the shortest supply.

A Toyota website shows that buyers in Japan wait between two and five months to receive many models.

One person reported that Prius hybrids had been sold out at a dealership on the West Coast of the United States by mid-February, and only a few Camry hybrids remained.

Another person stated that delivery times in India have improved from last year, but still range between two and nine months, depending on the model. Ten industry figures were interviewed, including Toyota employees and suppliers. They described the bottlenecks that are affecting the supply chain for hybrid vehicles. Toyota has not previously disclosed details of the parts or suppliers involved and the measures it is considering in order to relieve the pressure on one market.

Toyota stated in a press release that the demand for hybrid cars had increased "significantly" in the last year, in all regions. It was responding by increasing production. The automaker claimed to have improved its vehicle delivery lead times over the last year.

The report stated that "currently, the production capacity of hybrid parts and components at our suppliers' and in-house part manufacturing is aligned with our annual production plan and our vehicle assembly capacities."

Snarls for Supply

Some customers are frustrated by the delivery times.

Saugata Dasgupta is an Asia Development Bank executive based in New Delhi. He told us he had ordered a hybrid Toyota Innova Hycross in January 2023. He learned in August 2024 from the dealer that he would have to wait another 25-30 weeks.

Another email arrived this month: He will need to wait 15 to 25 more weeks.

Dasgupta claimed that he had given up on waiting by then and purchased a gasoline powered model from the local automaker Mahindra & Mahindra.

Two of the people who spoke to us were anonymous because they were not authorized to reveal the information.

One person said that a shortage of magnets in parts for Aisin Corp was a major problem. This person stated that Aisin, a major component maker for the Toyota Group, was unable to obtain rotors or stators from their suppliers. As a result of this, delivery of hybrid motors by Toyota was delayed. The magnets were sourced in Japan and China but the supply problem for Aisin, according to the person, was global.

Another person stated that Denso's inverters were also delayed due to bottlenecks with suppliers at the second and third tiers. Inverters are used to convert the battery current into a form that can be controlled by the motor.

Two people said that Toyota is looking at other suppliers than Denso to meet its component needs, and may even consider manufacturing inverters there.

Toyota didn't address questions about specific suppliers. Aisin Denso refused to comment. Last year, it was reported that Toyota plans to convert the majority of its line to hybrid vehicles. This could increase pressure on suppliers.

Addition of Capacity

Varinder Waddhwa is a vice-president at Toyota Kirloskar Motor in India. He said that the removal of supply chain bottlenecks has already led to "significant rationalization" in wait times.

Wadhwa stated that the company has recently increased its capacity to produce 32,000 additional vehicles per year and is investing in another 100,000 vehicles. Toyota also invested $14 billion in a battery factory in North Carolina in order to meet the demand for hybrid vehicles. It has stated that it will begin shipping batteries for North American electric vehicles in April. Toyota built hybrids in nearly half of its vehicles assembled in the U.S.

Toyota's hybrids are one of the few bright spots in China where it is facing fierce competition, such as BYD. Toyota's total sales in China fell by 7% in 2024 compared to a year ago, but sales of electrified vehicles (mostly hybrids) grew by 27%.

According to someone familiar with the situation, competitors such as Hyundai, and its Kia affiliate, are also struggling to ramp-up production of hybrids. This is primarily due to a shortage of capacity.

This month, a Hyundai dealer in Seoul stated that it would take a full year to receive the hybrid version for the Palisade SUV. Documents from Kia show that the wait time for its Carnival hybrid is 10 months and seven months for Sorento.

Hyundai has not responded to any questions regarding the current situation.

Hyundai announced in August that it will double its hybrid line-up to 14 models by 2030, to counter the slowdown of EV adoption.

Honda, another hybrid player, reported strong demand in North America and Japan but refused to provide specifics about delivery times.

Hybrids are worth the wait for some customers because of fuel savings.

Rakesh Kumar is a businessman from India's Uttar Pradesh. He finally received his Toyota Hyryder in March, nearly five months after ordering it.

He said: "We already have a hybrid in our family, and I know that it gets better mileage than any other vehicle." Aditi Shirouzu and Norihiko Shrouzu reported; additional reporting was done by Daniel Leussink and Heekyong Yah in Seoul and Hyunjoo Ji and Heekyong Jin in Tokyo; Saurabh Sharma and David Dolan edited the story.

(source: Reuters)