Toyota Is Always Right
Hybrid vehicle demand continues to rise rapidly, and Toyota is struggling to keep pace. Remember when the collective industry screamed that Toyota was wrong for going down the hybrid path and the company would regret avoiding exorbitant investments into pure battery-electric vehicle tech?
Yeah, I remember.
Key Points
- Global hybrid vehicle sales have tripled in five years, creating widespread inventory shortages for Toyota across key markets.
- Supply chain issues, including a shortage of magnets and hybrid powertrain components, are contributing to extended wait times of up to five months.
- Toyota says hybrid production is running at capacity, in line with the automaker's annual production plans—vindicating its bet on the established technology.
While electric vehicles face fluttering interest due to price elasticity concerns and charging infrastructure limitations, hybrids are proving more appealing to a wider range of consumers, thanks to their lower cost, efficiency, and the ability to maintain lifestyle.
Toyota's hybrid models are so appealing that they're creating upward pressure on Toyota’s global supply chain, resulting in extended wait times for customers and limited dealer inventory in markets across the globe.
According to a report from Reuters, global hybrid sales have tripled over the past five years. Toyota, which has been a pioneer in the hybrid vehicle space and has led the industry for more than a decade, now finds itself working through demand induced production bottlenecks and material constraints at key suppliers that are affecting hybrid vehicle availability.
In Europe, buyers are reportedly waiting 60 to 70 days for hybrid models like the Yaris Cross and RAV4 PHEV. In Japan, the wait can stretch from two to five months, depending on the model. In the United States, inventory selection on dealer lots is either thinning rapidly or nonexistent.
The delays are largely driven by shortages of key hybrid components. Toyota has cited a lack of magnets, which are essential to electric motor production, as one of the major constraints. Additionally, a tight supply of hybrid powertrain parts manufactured in Japan is slowing overall output. Issues at second- and third-tier suppliers caused delays for key inverters, while a short supply of rotors and stators is delaying the delivery of hybrid motors.
Toyota says hybrid production is running at capacity, in line with the automaker's annual production plans—vindicating its bet on the established technology.
The company has already committed $14 billion for a battery plant in North Carolina, which will begin shipping batteries for hybrid vehicles starting later this month April. Honda plans to begin purchasing batteries for its hybrid models from Toyota. Nearly half of all Toyota vehicles built in the United States last year were hybrids
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An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, been over the wall during the Rolex 24, and worked in the intense world of IndyCar.
More by Michael Accardi
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A Hybrid is the only type of Electric vehicle I would ever consider buying. Pure Electric does not make any sense unless you live on the west coast. In the meantime I'll keep my old Jeep TJ, I hear because of Trump's tariffs the old cars are going up in value.
My third ES is a hybrid. I didn’t intend to buy a hybrid, as gas cost is just not an issue. After driving the hybrid, I changed my mind and city driving delivers a jaw dropping 45 mpg!