Stock shortages to continue: Toyota

TOYOTA Australia says long waits for models including its RAV4 and LandCruiser variants are likely to continue through 2023.

Speaking to media gathered for the launch of the new Corolla Cross in Sydney this week, Toyota Australia Vice President Sales, Marketing and Franchise Operations, Sean Hanley, said delivery delays and stock shortages are expected to be ongoing, with no end to global microprocessor issues – a key ingredient behind many of the brand’s hybrid vehicle production delays – a primary driver.

“It is very hard to predict what will happen over the coming 12 months. We have a healthy production – record production – and we’re trying to smooth things out as best we can,” he said.

“At the moment, it’s just difficult, and I want to reiterate that while our market share last month was certainly lower than we’d like, we’re not panicking. There are reasons for it, logisitical reasons, not market reasons.

“We have a very healthy order book, but our year in front of us will be largely determined by what we can source in terms of production, and we are working very hard with our parent company to try and reduce our order backlog and get these cars to customers who have been waiting a long time.”

Mr Hanley said that industry wide shortages of raw materials, particularly those related to the production of batteries and microprocessors, are a challenge for all manufacturers – and not just Toyota.

“The main challenges today, not just for us but the entire industry, are the availability of semiconductors, precious metals, and labour ... It’s becoming clearer by the day that the supply challenge is not going to be resolved as quickly as we had hoped,” he explained.

“Our best estimate is that the semiconductor shortage is likely to continue through 2023 … and unfortunately wait times are not getting any shorter. We are cautiously optimistic about next year, though our circumstance may be different to others.”

Mr Hanley said delays affecting RAV4 hybrid models and both 70- and 300-Series LandCrusier were likely to remain for now and said Toyota would not resume taking orders for its 70 Series workhorse until such time as the current production backlog had been cleared.

“We have paused that car … I wouldn’t see that changing in the next six months, at least – and maybe beyond that,” he said.

“If we can improve production, and give more certainty to our customers, we will. But we have to clear the current order bank – that’s the priority to customers who have been waiting, and some of them have been waiting for a little over 12 months now.

“We’ll decide at a later time when we can open it up (the order book), but there’s no plan at this stage. Expressions of interest are welcome, but we physically cannot take any more orders.”

Mr Hanley repeatedly apologised on behalf of his parent company, saying Toyota was being careful to balance the timely arrival of new product while continuing to provide production levels that would address the lengthy delays witnessed on some model lines for over two years.

“We are very carefully balancing keeping our momentum and keeping our customers as happy as we can,” he said.

“We still have a big job to do with our customers, and we know that, you know that, and I know that. I have openly apologised on behalf of the company, but to be quite honest, an apology won’t cut it anymore. We need to go to the next level.

“We’ve tried, in even the most difficult and challenging times, to continue launching cars and to continue bringing cars to the market that our customers want … we can’t ever fall behind; the market is too competitive. You have to be in front, as best you can, all the time – and you’ve got to keep reinvigorating the brand with new product.

“That’s what we’re doing.”