In case you haven’t heard, hybrid vehicles are in high demand. One automaker is seeing demand for its hybrids outpace supply, which is now causing significant delays around the world for Toyota hybrids. Tight part supplies are also affecting Toyota suppliers like Aisin and Denso. Toyota is working to boost production and meet the demand.
Toyota Hybrid Demand is Soaring
EVs are out and hybrids are in as many buyers have moved toward the latter vehicle type, likely seeing the best of both worlds. Hybrid vehicles combine a combustion engine with an electric battery and motor to increase gas mileage. Some hybrids even have a decent amount of all-electric range for moving around town. Toyota’s lineup has more hybrids than any other type.
However, the demand has resulted in many buyers visiting a Toyota car dealer and finding that they don’t have much to choose from. Hybrid models are in low stock across major markets, including Japan, China, Europe, and the United States. The surge in demand is a big challenge for Toyota, the main player in the hybrid segment.
On the other hand, the demand appears to fully vindicate Toyota’s bet that hybrids would be viewed as more practical by more buyers. Some rivals thought that fully electric vehicles would wipe out interest in hybrids. The opposite has happened instead.
Global Hybrid Sales Have Tripled
Hybrid sales have tripled globally, from 5.7 million five years ago to 16.1 million now. Toyota buyers in Europe have to wait an average of 60 to 70 days to get a new hybrid. This is almost twice the wait time in 2020. The hybrids with the longest wait time are the Yaris Cross and the RAV4 plug-in hybrid. These models are the most popular, and supply simply hasn’t kept up with demand.
In Japan, buyers have to wait between two and five months for several Toyota models. The situation isn’t much better in the US. According to sources on the West Coast, Prius models went quickly in February, leaving only a handful of Camry hybrids at one particular Toyota car dealer. India is another important market for Toyota, and delivery times have gotten better since last year, but wait times can still be as long as nine months, depending on the model.
Toyota has said that bottlenecks in the hybrid supply chain are partly to blame. The Japanese automaker revealed that hybrid demand has increased significantly in every market, and it is currently working hard to boost production in response.
Made In Japan is a Problem
One of the biggest problems in the hybrid supply chain is that the powertrains are largely made in Japan. They’re then shipped abroad to plants where the car is assembled. One customer in India revealed his frustration with the hybrid wait times. He ordered an Innova Hycross SUV in January 2023 but found out in August 2024 that he would need to wait another 30 weeks. When that passed, he was then informed he might need to wait another 25 weeks.
Unsurprisingly, the customer gave up waiting and bought a gas-powered vehicle from his local dealership. Two of Toyota’s top suppliers, Aisin and Denso, have confirmed that bottlenecks have delayed production. At this point, Toyota may search for other suppliers in certain markets as it works to meet demand.
