Toyota struggles to meet soaring hybrid demand amid supply chain woes 

TOKYO: Toyota is struggling to keep up with surging demand for its gasoline-electric hybrid vehicles, with supply chain bottlenecks leading to months-long wait times for customers, according to industry insiders.

The sharp rise in hybrid sales underscores Toyota’s dominance in this segment and validates its long-standing strategy of investing in hybrid technology, despite forecasts from some competitors that battery-electric vehicles (EVs) would render hybrids obsolete. 

Data from LMC Automotive shows that global sales of hybrid models, including plug-in hybrids, have soared from 5.7 million to 16.1 million in the past five years. However, the increased appetite for hybrids is stretching Toyota’s production capacity and straining its supply chain. 

In Europe, customers are now waiting an average of 60 to 70 days for new hybrid models—roughly twice as long as in 2020, according to an industry source. The Yaris Cross hybrid and RAV4 plug-in hybrid are among the most in-demand models in the region, Toyota confirmed. 

In Japan, waiting times range from two to five months for various models, while in the US, some West Coast dealerships have completely sold out of Prius hybrids, with only a handful of Camry hybrids available. In India, where Toyota sees strong growth potential, delivery times vary between two and nine months, though the situation has improved since last year. 

Interviews with industry figures, including Toyota representatives and suppliers, reveal ongoing challenges in sourcing hybrid components, though details of specific parts and suppliers remain undisclosed. Toyota has acknowledged the growing demand and said it is working to expand production. 

“The demand for hybrids has risen significantly across all regions in the past year, and we are doing our best to increase output,” the company said in a statement. Toyota added that it had managed to reduce delivery lead times over the past year and that hybrid component production was aligned with its annual manufacturing plans. 

However, delays continue to frustrate customers. Saugata Dasgupta, an executive at the Asian Development Bank in New Delhi, ordered a Toyota Innova Hycross hybrid SUV in January 2023, only to be informed in August 2024 that his wait time had been extended by up to 30 weeks. This month, he received another update—he would have to wait an additional 15 to 25 weeks. 

While Toyota works to address these supply issues, the growing demand for hybrids highlights the company’s strategic advantage in a market where fully electric vehicles have yet to gain universal acceptance. 

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