Toyota, the dominant player in hybrid technology, faces significant logistical hurdles as its hybrid sales continue to soar. Over the past five years, global hybrid sales, including plug-in models, have almost tripled from 5.7 million to 16.1 million, according to LMC Automotive.
Extended Wait Times Across Markets
Toyota’s European customers now face average wait times of 60 to 70 days for new hybrids, nearly double the duration in 2020. The most in-demand models in Europe include the Yaris Cross hybrid and the RAV4 plug-in hybrid. In Japan, buyers wait between two and five months for many hybrid models, while U.S. dealerships are experiencing severe shortages. In mid-February, one West Coast dealership had no Prius hybrids available and only a handful of Camry hybrids left.
In India, a key growth market, delivery times have improved but still range from two to nine months, depending on the model.
Supply Chain Bottlenecks
Toyota and its suppliers are struggling to secure critical hybrid components, most of which are manufactured in Japan and then shipped globally. A shortage of magnets, used in hybrid powertrains, has particularly affected Aisin Corp, a key Toyota supplier. Aisin has been unable to procure sufficient rotors and stators, delaying hybrid motor deliveries to Toyota. Though the magnets come from Japan and China, the supply issue has had a global impact.
Denso, Toyota’s largest component supplier, has also faced bottlenecks at second- and third-tier suppliers, leading to delays in inverter production. Inverters are essential for converting battery power and controlling electric motors. To address these shortages, Toyota is considering sourcing inverters from alternative suppliers in India and possibly manufacturing them there.
Toyota’s Response and Future Investments
Despite these challenges, Toyota is working to increase production capacity. The company recently added capacity for 32,000 additional vehicles per year in India and is investing to expand production by another 100,000 units. In the U.S., Toyota has committed $14 billion to a battery plant in North Carolina, set to begin shipping hybrid vehicle batteries in April. Nearly half of all Toyota vehicles assembled in the U.S. last year were hybrids.
Competition and Market Trends
Toyota’s hybrid sales have been a rare bright spot in China, where it faces intense competition from BYD. While Toyota’s overall sales in China declined by 7% in 2024, sales of electrified vehicles, primarily hybrids, rose by 27%.
Competitors such as Hyundai and Kia are also struggling with hybrid production due to limited capacity. A Hyundai dealer in Seoul reported a one-year wait time for the Palisade hybrid SUV, while Kia’s Carnival hybrid had a 10-month wait and the Sorento hybrid a seven-month delay. In August, Hyundai announced plans to double its hybrid lineup to 14 models by 2030 to counter slowing electric vehicle adoption.
Honda also reports strong hybrid demand, particularly in North America and Japan, though it has not disclosed specific delivery times.
Consumer Perspective
For some buyers, the long wait is worth it due to fuel savings. Rakesh Kumar, a businessman in Uttar Pradesh, India, received his Toyota Hyryder SUV in March after nearly five months. Despite the delay, he remains convinced of the benefits, stating, “We already have one hybrid car in the family, and its mileage is far better than any other car.”
Toyota’s bet on hybrids has proven successful, but maintaining supply chain stability and meeting growing demand will remain a significant challenge.