Parts Shortages Delaying Toyota Hybrid Production, Deliveries Globally
A significant increase in demand for Toyota hybrids, especially since the start of 2024, has resulted in inventory problems and long delivery times—up to over a year—not only in Canada but also in several global markets. The Corolla Cross Hybrid, Prius and various RAV4 models are just some examples.
Parts shortages are to blame to some extent, as Reuters reported on Monday, with bottlenecks affecting the entire supply chain and jeopardizing the automaker’s efforts to ramp up hybrid vehicle production to meet demand.
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Anonymous sources who are familiar with Toyota’s plans have raised concerns about a tight supply of materials and components used in hybrid powertrains, most of them made in Japan and shipped overseas to where vehicles are assembled. For one, Aisin is said to be having a hard time producing the rotors and stators used in electric motors due to a shortage of magnets.
Denso, another major Toyota supplier, is reportedly unable to supply enough inverters due to delays with its own partners. Reuters’ sources claim that Toyota may turn to other suppliers and is also considering making inverters at different plants.
Hybrid Sales Are Way Up
Remember, Toyota’s product lineup is increasingly making room for hybrids. In fact, some models no longer offer gas-only options. That’s part of the reason why a huge battery factory is under construction in North Carolina—representing an investment of around $13.9 billion USD—with four separate lines dedicated to hybrids. It’s slated to come online and start shipments this month.
In Canada, electrified vehicles (including hybrids and EVs) now account for over 55 percent of Toyota’s total sales. The popular RAV4 saw its hybrid variant hit a February record with 2,996 units sold, up 52.2 percent year over year. Other strong performers during that month included the Camry Hybrid (62.4 percent), Corolla Cross Hybrid (47.4 percent), Highlander Hybrid (125.7 percent) and Sequoia (38.5 percent).
