Toyota’s Hybrid Popularity Outpaces Production Worldwide

Soaring global demand for Toyota's hybrid vehicles is straining the automaker’s supply chain, leading to widespread delays as component shortages and limited production capacity challenge its ability to keep up.

2 minute read

April 1, 2025, 6:00 AM PDT

By Clement Lau


Close-up of Hybrid logo on back of silver Toyota sedan.

Ruslan / Adobe Stock

Toyota is facing significant global delivery delays for its hybrid vehicles due to a surge in demand outpacing supply, causing months-long waits for customers across major markets including the U.S., Japan, Europe, China, and India. The hybrid boom has validated Toyota’s long-standing strategy of investing in gasoline-electric vehicles, even as some competitors bet on a full shift to battery-electric models. However, the surge has placed immense pressure on Toyota’s supply chain, with key components like hybrid motors and inverters in short supply due to production bottlenecks at suppliers such as Aisin and Denso.

The shortage is compounded by limited production capacity and dependency on parts manufactured in Japan and China, which are then shipped abroad for vehicle assembly. Delays of several months are common for popular models like the Prius, Camry Hybrid, Yaris Cross, and RAV4 plug-in. In India, customers have faced delivery windows of up to nine months, though Toyota has made efforts to expand production locally. Meanwhile, Toyota is exploring new suppliers and considering in-country production of critical components like inverters to ease the strain.

To address the growing demand, Toyota has added manufacturing capacity in India and invested $14 billion in a new battery plant in North Carolina. Hybrids now make up a significant portion of Toyota’s vehicle output in key markets, including nearly half of all vehicles assembled in the U.S. in 2024. While competitors like Hyundai and Honda are also struggling to keep up with hybrid demand, Toyota's continued growth in electrified vehicle sales — particularly in China — suggests hybrids remain a strong and resilient alternative amid a cooling electric vehicle market.

Sunday, March 30, 2025 in Reuters

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Wastewater pouring out from a pipe.

Alabama: Trump Terminates Settlements for Black Communities Harmed By Raw Sewage

Trump deemed the landmark civil rights agreement “illegal DEI and environmental justice policy.”

April 13, 2025 - Inside Climate News

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

5 hours ago - Diana Ionescu

Black and white photos of camp made up of small 'earthquake shacks' in Dolores Park in 1906 after the San Francisco earthquake.

The 120 Year Old Tiny Home Villages That Sheltered San Francisco’s Earthquake Refugees

More than a century ago, San Francisco mobilized to house thousands of residents displaced by the 1906 earthquake. Could their strategy offer a model for the present?

April 15, 2025 - Charles F. Bloszies

Looking out at trees on 4th Street in downtown Los Angeles, California.

LA’s Tree Emergency Goes Beyond Vandalism

After a vandal destroyed dozens of downtown LA trees, Mayor Karen Bass vowed to replace them. Days later, she slashed the city’s tree budget.

2 hours ago - Torched

White and blue Sacramento regional transit bus with one bike on front bike rack.

Sacramento Leads Nation With Bus-Mounted Bike Lane Enforcement Cameras

The city is the first to use its bus-mounted traffic enforcement system to cite drivers who park or drive in bike lanes.

2 hours ago - Streetsblog California

View of downtown Seattle with Space Needle and mountains in background

Seattle Voters Approve Social Housing Referendum

Voters approved a corporate tax to fund the city’s housing authority despite an opposition campaign funded by Amazon and Microsoft.

4 hours ago - Next City