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Global logistics issues delay Toyota deliveries

Although orders for new Toyota vehicles are growing in New Zealand due to consumer buying confidence and new model launches, delivery times are being delayed by a range of supply issues overseas.

“The effects of COVID-19, closed borders and delayed shipping and logistics into New Zealand are severely impacting all operational areas of our business,” says Neeraj Lala, Toyota New Zealand Chief Executive Officer.

“We have seen greater than a 30% reduction in our new and used vehicle sales due to the closure of the borders, and we are forecasting a minimum of ten years impact to our overall value chain including reduced parts and service.”

Supply chain disruptions due to COVID-19 and congested ports are the main cause of vehicle supply delays, although this is exacerbated by high global demand for new Toyota vehicles.

There is also further disruption in logistics with global shipping delays impacting new vehicles, used vehicles from Japan and parts, which has an effect on delivery schedules to customers in New Zealand.

Delivery of certain Toyota models into New Zealand are delayed by an average of six weeks due to production and international shipping constraints.

Mr Lala says the company is enormously grateful customers are showing patience but accepts that on-going delays will impact future sales as customers become frustrated.

“We are doing everything we can, but global demand and supply restrictions combined with shipping delays are fuelling customer frustration. We are providing customers with updates as often as we can but these timeframes are fluid.”

The delays are affecting most new models, with popular new vehicles such as the 2021 Hilux and RAV4 hybrids experiencing higher than normal wait times around the world, not just New Zealand.

Mr Lala says deliveries up to March 2021 are impacted and there is potential for delays to continue until the middle of the year.

“We currently have 3,297 retail orders as at the end of November, which is a good position for Toyota New Zealand to be in but that means 72 percent of vehicles arriving in the country are pre-sold which is unprecedented for Toyota as demand for low emission hybrids continues to surge,” he says.

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