Toyota Prioritizes Hybrids Amid Supply Chain Strain

Toyota is facing a significant supply chain challenge due to the soaring demand for its hybrid vehicles, leading to parts shortages and prolonged wait times globally. The company's focus on hybrids has been validated by a tripling of global hybrid sales over the past five years, despite expectations for electric vehicle dominance. Toyota has prioritized hybrid production over fully electric vehicles, causing a tight supply chain, particularly for components from Japan and China, resulting in delays in major markets such as the U.S., Europe, and Asia. Models like the Prius and RAV4 are sold out or have limited availability, with extended wait times for customers. To address these challenges, Toyota is investing in new production facilities to boost output by more than 100,000 vehicles annually. The company believes that hybrids offer a more immediate way to reduce emissions compared to electric vehicles, given current resource constraints.