Toyota sales slump amid supply and shipping issues

Toyota has been a dominant force in the Australian car market for almost two decades but the start of this year has been a nightmare for the brand

The Ford Ranger is beating the Toyota HiLux in the sales race. Picture: Supplied.

Is Toyota’s crown slipping?

Australia’s favourite car company has had a disastrous start to this year, with sales plummeting by 30 per cent.

Semiconductor shortages and shipping delays have wreaked havoc on the brand, which has dominated the new-car market for almost two decades, accounting for one out of every five new cars sold.

The brand’s popular Toyota HiLux ute, which has been the best selling vehicle in the country for the past seven years, has been dethroned by the new Australian-designed and engineered Ford Ranger, while sales of the popular RAV4 SUV have slumped by more than 40 per cent as delivery waiting times stretch out beyond two years.

The HiLux has been shaded by Ford’s Ranger in the sales race this year. Picture: Thomas Wielecki.

Toyota claims its forward bookings are still very strong and deliveries will improve in the remainder of the year.

In a statement, the brand said the latest sales figures were the result of “supply constraints”. “We are expecting the situation to improve, particularly in the second half of the year. We continue to work closely with our global production teams and our local dealers to secure and deliver as many cars as possible, as quickly as possible.

“Demand for Toyota vehicles remains strong and our order bank is very healthy. For the full year, we are expecting to deliver more than 200,000 vehicles for the 19th time in the past 20 years,” the statement said.

The sales drop caps a rough few months for Toyota, which has been accused of lobbying governments around the globe to slow the uptake of electric vehicles.

Tesla has stolen Toyota’s environmentally-friendly crown. Photo: Mark Bean.

It’s a dramatic image turnaround for the brand, which became the darling of environmentalists when it launched the Prius hybrid car at the turn of the century.

While rivals such as Hyundai and Kia have enjoyed success with EVs in Australia, Toyota is yet to launch one locally.

In contrast to Toyota’s downturn, electric vehicle sales are booming, while Chinese vehicles are attracting record numbers of buyers.

Electric vehicles made up 8 per cent of the new-car market last month, up from just 1 per cent last April.

Tesla’s Model Y was the fourth-best selling SUV car in the country, while the brand’s Model 3 was the top-selling sedan. It now outsells established brands such as Honda, Subaru and Volkswagen.

Electric vehicles are gaining a foothold in the local market. Picture: Thomas Wielecki.

Federal Chamber of Automotive Industries chief executive Tony Weber said five of the top ten selling vehicles last month had some form of electrification.

“Electric vehicles accounted for 8 per cent of sales in April. This is well up from 1.1 per

cent compared with April 2022. If you take all forms of electrification, that number has

increased from 9.5 per cent to 15.4 per cent, and we know that this number would

have been larger had the industry not faced global supply challenges,” he said.

But while electric vehicle sales are growing, sparked by state government cash incentives and Federal Government tax breaks, Australian buyers continue to flock to thirsty utes and SUVs.

SUVs and utes made up roughly three-quarters of new-car sales in April and sales of big American-style pick-ups costing more than $100,000 are up by more than 50 per cent this year.

Sales of Chinese cars such as the Chery Omoda 5 and Haval Jolion have boomed. Picture: Mark Bean

Elsewhere in the market, sales of vehicles sourced from China increased by 68.5 per cent last month, as frustrated buyers flocked to cheaper alternatives with shorter delivery times.

Australians have bought more vehicles from China than Korea in the first four months of the year.

Overall vehicle sales were up slightly on last April, as supply constraints continue to ease for some brands.

Despite its slump, Toyota still dominated the market in April with 12,029 sales, ahead of Mazda (6926), Kia (6200), Hyundai (5732) and Ford (5047).

The Ranger topped the charts ahead of the HiLux, RAV4, Model Y and Hyundai i30.