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While almost every automobile manufacturer struggled through the semiconductor chip shortages in 2021, Japanese automaker Toyota (NYSE:TM) fared better than most. However, now the hybrid vehicle leader has officially fallen behind as the company struggles to keep their dealers supplied with inventory.
According to recent reports, the world largest automaker currently holds a 36-hour supply of on-hand inventory. This compares with 2019 when Toyota held a 60-day supply of inventory. As a result, dealers are struggling to get their hands on vehicles, and sales are down 23% for the first quarter, while average transaction prices have reached all-time highs.
This week, Toyota Motor North America executive vice president of sales, Jack Hollis said dealership inventory levels won’t be able to grow at all until perhaps the third quarter of 2023 and are unlikely to ever return to their pre-pandemic levels.
