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

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