Car Shortages to Last Another Year- Says Toyota Exec

Car buying is not going to get easier anytime soon, according to a Toyota executive. He said the global supply shortage will likely ease up until late 2023.

Related: 2022 Toyota Tundra Recalled for the Third Time

Toyota’s executive vice president of sales, Jack Hollis, while speaking to the Automotive Press Association, said:

“We’re going to be dealing with this for one more year. I do not believe we’re going to see growing dealer stock for one more year. I think we’re going to be in a situation, speaking for Toyota and Lexus, where whatever we wholesaled is what we’ll retail.”

The Japanese automaker which outsold GM on its home turf, saw its sales dropped 22% in the second quarter of 2022 due to tight supplies. Toyota’s profit has also been largely hit by the supply-chain issues while its inventories have now also reached historic low.

Although inventories have reportedly started to recover across the industry, with Cox Automotive estimating that there was a 37-day supply in July, which was up from 29 days the year before, but still about half that of the historical average. However Hollis predicts that even when the supply chain is fixed, things will never return to the way they were, with lots full of cars waiting to be delivered to the customers.

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Hollis also defended Toyota’s plans to offer a wide range of vehicles, including hybrids, in the coming years, rather than committing to going all-in on electric vehicles. He said it is the best approach to reduce overall emissions. He said:

“In my experience over 31 years in this industry, when government and others start telling consumers what they must have, consumers start to push back. Toyota may not move first, but it will move best.”

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