Toyota's redesigned RAV4 has become so scarce in the United States that dealers are managing waiting lists normally associated with supercars, with some customers facing delays of half a year before taking delivery. The supply squeeze, which first emerged earlier this year, shows no sign of easing as the hybrid-only crossover continues to attract buyers faster than Toyota can ship it.
Colonial Toyota in Milford, Connecticut, is a case in point. Owner Bobby Crabtree told CNBC that his lot, which has room for another 250 vehicles, is currently only around one-third full. While not every empty space would normally hold a RAV4, the shortage is unmistakable, and Crabtree said he would welcome far more stock. Customers Nancy and Ira Berman know the problem from the other side of the sales desk: they ordered their RAV4 in March and are only now preparing to take delivery, six months later. “The wait was a slight annoyance,” Nancy Berman told CNBC, adding that the couple already had other Toyotas they could drive in the meantime.
Toyota openly admitted that supplies would initially be tight when it launched the latest RAV4. The redesigned crossover went hybrid-only in America, with the initial supply coming from Japan and Canada due to factory retooling at the Kentucky plant. Those Japanese exports were also hurt by the conflict in the Middle East, compounding the shortfall. Kentucky is now churning out RAV4s too, but the gradual production ramp-up meant dealers were not going to receive their usual volumes straight away, and Toyota is still playing catch-up with runaway demand.
The tight inventory has cost Toyota tens of thousands of potential RAV4 sales this year. Earlier this summer, some dealers were measuring RAV4 inventory in hours rather than days, while one California Toyota store reportedly had more than 800 customers waiting. The situation has persisted for months, and dealers are staring at spaces where shiny new RAV4s should be sitting.
Yet customers still want them, even if they have to wait, because America loves its RAV4s. Almost 480,000 were sold in the US last year, making Toyota's crossover the country's third best-selling vehicle behind only the Ford F-150 and Chevrolet Silverado. The move to hybrid-only power at a time when gas prices have skyrocketed looks well timed. Hybrids account for more than 18 percent of US new-vehicle sales this year, according to JD Power.
Despite the inventory problems, Toyota's US sales are up this year overall, underscoring the strength of demand across its lineup even as the RAV4 shortage persists. For now, dealers and customers alike are left waiting for production to catch up with an appetite that shows no sign of cooling.